David Cameron has stressed Britain faces a clear choice: tax cons now and tax rises later with Labour, or fiscal responsibility and permanent funded tax cuts with the Conservatives.
In a press conference in London, David attacked Gordon Brown’s plans to go on a “borrowing binge”, warning that Labour’s borrowing bombshell will turn into a tax bombshell in the long run.
The Labour Ministers Tony McNulty, Alistair Darling and Peter Mandelson have all indicated that increased borrowing would have to be paid for with higher taxes at some point – and David said:
“Gordon Brown knows that borrowing today will mean higher taxes tomorrow. If he doesn’t tell you that he is deliberately misleading you.”
David stressed that instead of tax cons, Britain needs fiscal responsibility:
“Not spending money we haven’t got - but saving it to help people through tax relief. Not borrowing money on the nation’s credit card - but getting a grip on public spending and making sure Britain starts living within its means. That’s the only responsible way to get our economy back on the path to recovery.”
David promised to set up an independent Office for Budget Responsibility to bring stability to the public finances and open the way for permanent tax cuts in the future.
And he said he would restrain the growth of spending by not matching Labour's "unsustainably high" spending plans for 2010-11 and the years beyond.
“What once looked affordable in boom times is now clearly unsustainable. Let me put this as clearly as I can - unless we curb the growth of spending, taxes will need to rise in the future. Without such restraint, the borrowing bombshell will turn into a tax bombshell.”
Read David's speech