Leaders trade blows over tax in final PMQs
Updated on 07 April 2010
Gordon Brown tells Channel 4 News that there will be no change in the basic income tax rate as the party leaders clash over tax and the economy at parliament's final prime minister's questions.
It was loud, it was fierce and it shed more heat than light as the party leaders took the chance to swap statistics and insults at the last prime minister's question session before parliament is wound-up tomorrow ahead of the 6 May election.
Rising to huge cheers from the Conservative benches, David Cameron warmed up with questions about the provision of helicopters for British troops in Afghanistan and how Gordon Brown had "robbed" pension funds of £100bn since 1997 before moving on to Labour plans for a rise in national insurance contributions.
Shortly before the start of the session, the Conservatives had unveiled a list of another 30 business leaders who supported their commitment to scrap the increase.
"The prime minister has made the decision to introduce a jobs tax which will kill the recovery," said Mr Cameron.
"This morning on GMTV he said business leaders who oppose this decision have been deceived. Is he saying he knows more about job creation than business leaders who employ almost one million people in this country?"
Mr Brown reeled off a series of measures the government had taken to tackle the recession - measures that he said had been supported by businesses, but opposed by the Conservatives.
"There is a clear choice," he said. "We can put the national insurance up and therefore protect our schools, our hospitals and our policing, or we can do what the Conservatives traditionally do - that is put our schools, police and health services at risk."
Mr Cameron snapped back: "The choice is Labour's decision to go on wasting money and then put up tax on every job in the country. Business leaders say putting up national insurance will endanger the recovery. Does he believe those business leaders were deceived?"
The prime minister responded: "We can't cut our way to recovery - and that is why to withdraw £6bn from the economy now is the wrong thing to do. The Conservative polices would put jobs at risk immediately, would put businesses at risk immediately and would put growth at risk immediately."
Mr Cameron then began to read the comments of some of the business leaders who were opposing the national insurance increase - beginning with Paul Walsh - the head of Diageo and a member of the prime minister's business council. As Labour MPs heckled, Mr Cameron replied: "No, not a Tory - one of his own advisers. Well, he's probably a Tory now - so are half the country."
He concluded: "This prime minister would wreck the recovery by putting a tax on every job - on everyone earning over £20,000 - a tax on aspiration - a tax on every business in the country. This government would wreck the recovery."
But Mr Brown had his own response ready - reminding MPs of one of Mr Cameron's attacks on his predecessor, Tony Blair. "Once again he has said nothing about the future. It is the same old Tories. To think, he was the future once."
The Liberal Democrat leader, Nick Clegg - who has only two questions to the prime minister, rather than the six allowed for the leader of the opposition - accused both his rivals of colluding to block reform of political funding.
"We all remember 1997 - the hope and promise of this new government," he said.
"Look at them now. It is over. You have failed. It's time to go."
