Cameron to offer tax reform concessions to LibDems
Share
Conservative leader David Cameron says he is willing to make the Liberal Democrats’ proposals on tax reform a priority in exchange for a quick pact.
In a press briefing this afternoon, Cameron said the Conservative party has to accept that it fell short of an overall majority and look to other parties to create a government.
He said: “I want to make a big, open and comprehensive offer to the Liberal Democrats. I want us to work together in tackling our country’s biggest and most urgent problems - the debt crisis, our deep social problems and our broken political system.”
Cameron said while he will not budge on issues such as EU involvement, immigration or defence, there are some areas such as tax reform where the Conservatives are willing to give ground to the LibDems.
He said: “I believe that on the basis of the election result that we achieved, there is reason to expect that the bulk of the policies in our manifesto should be implemented. But across our two manifestos there are many areas of common ground. And there are areas where I believe that we in the Conservative party can give ground. Both in the national interest and in the interest of forging an open and trusting partnership.
“The Liberal Democrats have made proposals to reform our tax system. We both agree that Labour’s jobs tax, as the Liberal Democrats’ manifesto puts it, is a damaging tax on jobs and we would seek to reverse it. It has always been an aspiration for the Conservative party to reduce taxes, especially on those who earn the least. And we are happy to give this aim a much higher priority and work together to determine how it can be afforded.”
The LibDems propose scrapping income tax for the first £10,000 as part of a £17bn package of tax reforms designed to help out lower earners. They say the move would give £700 back to millions on low to middle incomes and free 3.6m more people from paying any income tax at all.
Scrapping higher-rate pension tax relief, a mansion tax on properties over £2m and scrapping child trust funds are all part of the LibDem proposals to pay for this tax reform.
Cameron said the Tories support the LibDem proposals to reform the UK’s political system and agrees that electoral system is needed.
He said: “I believe we will need an all-party committee of enquiry on political and electoral reform.”
Cameron says he remains convinced that starting to deal with the deficit this year is essential.
He said: “The new government must grip this deficit and prevent the economic catastrophe that will result from putting off the difficult and urgent action that needs to be taken.
“I believe it is not just important in this country to have strong and stable government, it is important that we get that strong and stable government quickly. So I hope we can reach agreement quickly on the big, open and comprehensive offer that I have outlined today.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (4)
Dale Tranter | 7 May 2010 4:27 pm
Clegg may be happy to do a deal with the Tories but his party rank and file won't be, however much more of a mandate Cameron has than Brown.
Unsuitable or offensive? Report this comment
Richard | 7 May 2010 6:25 pm
Both David Cameron and Nick Clegg are - I believe pragmatic people.
I think even David Cameron is coming round to believe that the two party- first past the post system -may now be a relic of 20th Century Politics of conflict and contrast of two seriously opposing philosophies.
The middle ground is now a much bigger and broader "church" than any of the lunatic wings.
The new 21st Century political scene needs to understand the realities of 21st - not 20th century problems - namely too may people now , increased costs , living much longer, smaller working populations unable to support a "free" existance for anyone not contributing something to the bills - any longer.
The politics of conscience( bribing the electorate) are over. Re adjusting people's expectations, contributions, cost burdens will be a painfull 5 - 10 years, but if our children are to have anything like a half decent life - that does not include supporting the older generation as well as themselves to theirs and the country's detriment - change has to happen.
The activists, reactionaries, revancists, dyed in the wool socialists, right of right Tories, Nationalists, seperatists, and all other forms of minority that the country has been pandering to for the last 40 years have to be ignored now and a basic simplicity pointed out
No money left - can't support you the way we have in the past.
Simple choice - accept a bit less, pay for a bit more- yes even in retirement or when ill - and we might get through. Asking for more and doing or paying a bit less- that way lies disaster.
Give Dave'n Nick a chance to cut a deal without the lunatic elements in both parties interfering - and if they don't like it - well go and join the Labour Party! In 5 years you can all have another go at wrecking the country then.
Unsuitable or offensive? Report this comment
Richard Brown | 7 May 2010 6:34 pm
Politics is the art of the possible.
If Mr Cameron doesn't do a deal with the LibDems, either the country will be ungovernable or Mr Brown will remain in the chair: both of which are bad for the country.
Unsuitable or offensive? Report this comment
Simon Mansell | 7 May 2010 6:34 pm
MARK HOBAN MP HAS A LOT TO ANSWER FOR
A recent poll by MoneyMarketing revealed that 51% of IFA's voted Conservative mainly due to the Tory pledge to scrap the FSA.
Perhaps if Mark Hoban MP had not been so supportive of the FSA's RDR the Conservatives would have achieved an even greater share of the IFA vote?
Unsuitable or offensive? Report this comment