Labour Shadow Chancellor Ed Balls has called on Chancellor George Osborne to cut taxes in next month’s Budget in a bid to stave off a 1930’s style depression.
Balls (pictured) wants the Chancellor to look at a cut in VAT but said if this was impossible he should look to cut any other tax. Balls suggested cutting income tax or putting more money into tax credits.
Speaking on the Andrew Marr show yesterday, Balls said the UK economy needed more stimulus to get it moving.
He said: “I think it’s a very dangerous situation. We’ve been here before. Countries locked together in a deflationary environment, years of low growth and high unemployment. We saw it in the 1930s, I think we are seeing history repeat itself.”
Speaking to The Sunday Times, Balls warned of a “lost decade of slow growth” unless the Government did more to stimulate the economy.
He said:“Any substantial tax cuts to help households and stimulate the economy would be better than doing nothing.
“Without that decisive action in the Budget to boost growth, I fear we are in for a lost decade of slow growth and high unemployment that will leave a permanent dent in our nation’s prosperity.”