David Cameron has sought to reassure his core base, and indeed the country, by suggesting that a Conservative government would reward those who “put their backs into the British economy” through tax cuts. Suprisingly the Lib Dems seem to be trying to encroach on traditional Conservative territory by attempting to model themselves as the party of tax cuts.
It has been reported that Lib Dem leader Nick Clegg, will use next week’s annual conference to draw attention to his pledge to slash 4p from the basic rate of income tax and cut state spending by £20 billion. Camerons comments come just days after another brilliant announcement when the Tory Shadow Chancellor George Osbourne pledged that a Conservative government would all but abolish inheritance tax by raising the threshold still further than the original £1 million bar they set last year.
Under the plans estates valued at over £2 million would be charged the traditional, and abhorrent I might add, 40% tax on their estate when they die. The first plans on the issue set the threshold at £1 million however this has now been extended to encourage Cameron’s ‘family friendly’ agenda. Under the current plans Conservatives would allow couples to transfer a spouse’s £1 million allowance on their death to the surviving partner. The surivors estate would then have an IHT of £2 million.
Under the original plans to increase the threshold to £1m around nine million families were set to escape paying 40 per cent tax on their estates . Under these plans, many millions more will now escape the same burden. I am happy that lately the Conservatives are returning ‘back to basics’ I completely understand the desire and neccessity to change however we can present a more moderate agenda without ignoring the policies that made us popular and electable for 20 years!
Tax cuts help everyone. It is one of the biggest load of leftie twaddle to say that only the rich benefit from tax cuts because we all do. Whether you save £1 in tax cuts or £1 million is irrelevant, you are still saving money! Good on ‘yer Dave now lets get some concrete proposals like the inheritance tax on the table or else people will just think it is windy rhetoric.