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Howard claims savers could be hit by tax rises

Government overspending will lead to tax hikes which are damaging to consumers trying to save for the future, claims new Conservative Shadow Chancellor Michael Howard.

In his first speech since returning to the Shadow Cabinet, the former Home Secretary told the Conservative party conference in Blackpool last week that the Government is spending faster than the economy is growing, which will force it to raise taxes.

Howard said more taxes will come in addition to measures the Government has already introduced to the detriment of savers.

He pointed specifically to increased stamp duty on homes, tax on pension funds and the withdrawal of tax relief on health insurance as areas where the Government is preventing people from saving for their future.

He also referred to an Institute of Directors survey which revealed that owners of small businesses are spending six hours a week dealing with red tape caused by Government regulations, which detracts from competitiveness.

Howard said: “Government spending is growing faster than the economy. If this trend continues, further tax rises are inevitable. Yes, further tax rises over and above all the stealth taxes we have already seen – the increase in stamp duty for people buying a home, the tax on pension funds, harming those saving for retirement, and the spiteful withdrawal of tax relief on health insurance for the elderly.”


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