A LABOUR ELECTION VICTORY WOULD MEAN HIGHER TAXES AND INTEREST RATES

Alistair Darling delivered the last Pre-Budget Report before a General Election.

Because he failed to take the tough decisions on spending before the election, there will be higher taxes and higher interest rates if Labour win the election.

The central measure was a tax on jobs that hits everyone earning over £20,000 – well below the median wage. That is Labour’s definition of the “well off”. Of all Labour’s tax rises this will be the one that it is the Conservatives’ priority to avoid.

Because Labour is weak they failed to deal with the £178bn deficit, cancelled the pre-election Comprehensive Spending Review, and instead said that a Labour victory at the election would mean:

• £7.8 billion higher taxes - £370 more per family - after the election
• Of this £6.5 billion - £310 more per family – is a rise in National Insurance - a tax on anyone earning over £20,000.
• Labour’s planned tax on jobs is now £200 a year on someone earning £30,000 a year, or £60 on average earnings of around £23,000
• And the ring fencing means a real terms 10% cut in all other Departments over just two years

Paul Campbell added: “Warrington North’s Labour MP Helen Jones who is a Government whip fully supports this Pre-Budget report. This report has consequences for the many hard working people of Warrington.”

Dec 2009