Tory Tax claims dishonest say Liberal Democrats

5.00.00pm UTC (GMT +0000) Fri 17th Aug 2007

A Conservative policy review has called for a swathe of tax cuts, including the abolition of inheritance tax completely. Former cabinet minister John Redwood, chair of the Conservative Competitive Challenge working group, this morning unveiled plans to free British business from a "lethal and toxic" mix of tax and burdensome regulation. As well as abolishing inheritance tax, the report recommends cutting corporation tax to 25 pence in the pound, raising the threshold for higher rate income tax, and cutting stamp duty on share deals. Mr Redwood said that the simpler, lower tax regimes of Ireland and the US should be examples to the UK, which has lost its economic competitiveness despite the general health of the global economy over the last 15 years.

This report shows that David Cameron's Conservative Party is stuck in Thatcherite Britain. It is true that inheritance tax and stamp duty have become unfair taxes under Gordon Brown but it is simply misleading and dishonest to claim that they can be abolished and the gap made up with mythical savings. David Cameron's rhetoric of compassionate conservatism is entirely undermined by the reality of their proposals of true blue Tory tax cuts for the wealthiest in society.