George Hollingbery on Tax & the Economy

That we need to aim to lower the tax burden on the economy in the long term is beyond doubt. That we cannot do so immediately is equally clear.

David Cameron’s line on this has been rehearsed again and again and I agree with him.

Now that we are all faced with a period of negative growth in the economy followed by a much slower period of economic growth - or no growth at all - the prospect of real cuts in the tax burden become ever more remote. It is almost certain that in the medium term, any Government will be faced with the multiple difficulties of a shrinking tax take, huge debt and costs driven upwards by inflation.

Cutting taxes in such an environment is not a realistic option.

What we can do is ensure that public services are reformed so that more is achieved with the same amount. This is examined further in the pages on health and education.

More on the Conservative Party's thoughts on the Economy can be found here.