View more on these topics

Mandelson warns of further tax hikes next year

Business secretary Lord Mandelson has warned that further tax increases may have to be introduced next year if Labour regains power.

Mandelson (pictured) is the first senior minister to admit to the potential need for further tax increases beyond what has already been announced, as early as 2011.

His comments came in a debate with Conservative Shadow Business secretary Ken Clarke yesterday and followed news that Government borrowing is to fall below the £178bn forecast.

He said: “There will come a time, and the new public spending review begins in March 2011 and we will prepare for that in a way that will enable us to judge much more carefully, and much better, what we have to do, what the economic circumstances require, both in raising taxation, should that be further necessary in addition to what we have already announced, or cutting public expenditure in ways that will be dictated by the size of the deficit at that time.”

The Conservatives seized upon Mandelson’s comments as evidence that “Labour is in chaos on tax”.

Shadow Chief Secretary to the Treasury Philip Hammond says: “People will be asking who speaks for the Government on tax, Liam Byrne, Peter Mandelson or Alistair Darling.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm