David Cameron says he would abolish basic rate tax on savings if the Conservatives were in power.
Speaking today, the Leader of the Opposition claimed Gordon Brown's plans to increase spending to revive the UK economy would leave Britain with a "catastrophic legacy of debt".
The Tory leader says he would scrap taxes on savings interest for basic rate taxpayers, currently 20%, and increase non-taxable income for pensioners by £2,000 if he were Prime Minister.
He says the tax cuts would be funded by lower public spending, and claims around £5bn could be saved by restricting public spending increased to 1% in real terms for the next two years. The Conservatives estimate the tax cuts would cost around £4.1bn.
Cameron also called for a general election to be held this year, after Gordon Brown said he did not plan on holding an election in an interview on Sunday.
The Tory leader also criticised the Government's 2.5% VAT cut, calling the policy a 'joke'.
However, Labour hit back, saying the Tories are promising tax cuts without having the funding to pay for them.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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