Aug 20 2007

Andy Burnham still does not get it

Published by John Redwood at 6:38 am under Blog

Andy Burnham went on to Sky with me this morning.

He gave his usual rant about how any tax cut will mean the end of civilisation as we know it.

When I asked him how Labour had managed to cut Corporation Tax without damaging services, he admitted it could be done (the answer should have been in their case, by putting other taxes and borrowing up!)

When the interviewer asked him why tax cuts couldn’t be paid for out of savings from waste reduction (after all the government itself has said it is wasting ??22 billion a year!), he had no convincing answer. I guess the Labour answer is because they do not know how to stop the waste.

When I put to him that as the economy grows so the Treasury pockets much more revenue, he seemed in denial of this obvious point. He had no answer to the experience of Ireland. They cut rates, this boosted receipts from extra growth, which enabled them to spend more on public services and cut rates again.

Andy Burnham concentrated on asking me if I agreed that the abolition of Inheritance Tax should be paid for by extra green taxes. He seemed unable to understand that I had already explained how the tax cuts I am proposing should be paid for - out of the proceeds of growth.

I have absolutely no intention of signing up to Labour reckless "wish list" of Tory green taxes which they are predictably and foolishly putting about. There is no need to for revenue reasons. The ??2.6 billion for the IHT/CGT proposal will be easily affordable out of the extra revenues growth generates, as will the Corporation Tax proposals over the first Conservative Parliament.

Andy Burnham should stop behaving like an over excited Council candidate in the middle of a heated election, and start to behave as the Chief Secretary to the Treasury. This government, after all, has belatedly recognised the competitive threat, and has started to cut Corporation Tax. I bet it also now cuts Inheritance Tax.

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One Response to “Andy Burnham still does not get it”

  1. Richardon 20 Aug 2007 at 1:53 pm

    (I made this comment on the ‘How to Pay for Tax Cuts’ thread below, but it is more appropriate her)

    Though I understand, and wholly admire, yours and Mr Osbourne’s cautiousness in phasing in tax cuts only when the economy allows it, don’t you agree that even the whiff of new “Green Taxes” confuses the issue somewhat, and hints that a Conservative government might rely on stealth taxes?

    I recall reading somewhere that you had advised Mr Osbourne not to put up flight taxes, so I am sure these green taxes are not your idea, but how do they reconcile with the other, tax-cutting proposals?

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