Unfunded Tax Cuts v Unfunded Spending Commitments

Yvette Cooper is spinning to all and sundry that the Tories have made £10 billion in unfunded tax reduction promises without “balancing” tax increases. She is briefing that reducing corporation tax to 27% will reduce taxes by £1.75 billion, £3.2 billion will stay in people’s pockets after the introduction of a transferable tax allowance, £3 billion will not be taxed from those getting working tax credit, £2 billion from the abolition of IHT for all but millionaires and £400 million lost to the Treasury and kept by first-time buyers after raising the stamp duty threshold.
Never mind that reducing corporation tax to 27% will still leave the rate 15% above high growth Ireland’s rate and that the extra billions in people’s pockets will be spent in the economy productively and have positive dynamic effects. Osborne has not balanced his budget plans is her central charge.

Guido wants to know about the Labour government’s unfunded spending commitments:These are the figures from the ONS, in 2003 Gordon made unfunded spending commitments of £36 billion, in 2004 £41 billion, in 2005 £38 billion, in 2006 £34 billion. This was during a time of strong economic performance when Gordon should have been paying down the national debt with budget surpluses. His prolific spending meant that he failed to balance the budget.

Last year he smashed the golden rule with £110 billion to be added to the PSBR after the nationalisation of Northern Rock plus the usual annual unfunded overspend of some £40 billion. To which we can add the off balance sheet fiddles like £725 billion of public sector pensions unfunded, not forgetting the £110 billion in payments due to companies in the next three decades under PFI and £18 billion of debt held by Network Rail and the figure is nearer £1.4 trillion, which is well over 100% of GDP. So the amount of unfunded spending commitments has now reached £1.4 trillion. Yvette Cooper is accusing George Osborne of proposing unfunded tax reductions which are small change in comparison.




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Ed Miliband goes studs in on Theresa May:

“When PM says “nothing has changed” she is lying. If she lies about this what else?”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

Ministers Wheeled Out to Defend Ditched Care Policy Ministers Wheeled Out to Defend Ditched Care Policy
Watch: Crick Roasts “Weak and Wobbly” May Watch: Crick Roasts “Weak and Wobbly” May
Protester Arrested at May Wrexham Visit Protester Arrested at May Wrexham Visit
Clegg Spinning Brexit Doom Report Clegg Spinning Brexit Doom Report
Sunday Shows Sunday Shows
Read Tory Manifesto In Full Read Tory Manifesto In Full
Green Leaders Cringe Skit Green Leaders Cringe Skit
Never Ending Tory Deficit Reduction Horizon Never Ending Tory Deficit Reduction Horizon
LibDem Collapse Explained LibDem Collapse Explained
Taxpayers’ Alliance Updates Iconic Tory Poster Taxpayers’ Alliance Updates Iconic Tory Poster
Cult of Corbyn Cult of Corbyn
“Labour is Chocolate Gateau: Too Much Makes You Sick” “Labour is Chocolate Gateau: Too Much Makes You Sick”
Labour Election Broadcast Star’s “Tax Efficient” Accounting Labour Election Broadcast Star’s “Tax Efficient” Accounting
Reporter Grabs Boob Live on BBC Reporter Grabs Boob Live on BBC
Liar Clegg Brillo’d Liar Clegg Brillo’d
Listen: Was McDonnell Handed Deficit Note? Listen: Was McDonnell Handed Deficit Note?
Progressive Alliance Map of Chaos Progressive Alliance Map of Chaos
Andrew Murray’s Greatest Hits Andrew Murray’s Greatest Hits