Brown preparing big tax giveaway
Updated on 17 November 2008
Gordon Brown is preparing a multi-billion pound pre-Christmas tax giveaway in a bid to revive the UK's ailing economy.
Downing Street sources indicated that cuts would be targeted at low-income families, probably through the tax credit and winter fuel payment systems.
Along with bringing forward and increasing spending, the "fiscal stimulus" package could be worth between £15 billion and £30 billion - largely funded through extra state borrowing.
Depending on how much was directed towards lowering taxes, that means the average family's bill could be slashed by up to £1,000.
But the Tories launched a furious attack on the principle behind the plans on Monday, insisting the Prime Minister was trying to "max out the credit card" at the expense of future generations.
Shadow chancellor George Osborne ruled out either proposing "unfunded" tax cuts, or supporting the Government's package - due to be unveiled in the Pre-Budget report next week.
"We are warning the country that Gordon Brown is abandoning fiscal responsibility and when a government does that it stacks up debt for future generations and stacks up tax rises for future generations as well," he told BBC One's Andrew Marr show.
"The choice in British politics is going to be funded tax cuts from the Conservative Party, and a tax con by the Labour Party that has abandoned 15 years of rhetoric on fiscal stability."
The comments risked infuriating Conservative right-wingers, some of whom support the idea of upfront tax cuts and find themselves arguably more aligned with Labour than their own leadership.
Mr Osborne also questioned Mr Brown's assertion that the G20 had accepted his call for co-ordinated cash injections and tax cuts in order to kickstart growth.
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