Conservative tax plans

The Tory tax commision recommends reforms to personal and business tax

Thursday, 19, Oct 2006 12:00

Tax cuts worth around £21 billion a year should be introduced into Conservative party policy, one of the party's policy groups has announced.

The tax reform commission's proposals focus on personal and business tax, and include cutting the basic rate of income tax by 2p and abolishing inheritance tax.

Other recommendations include a £3 billion slash in corporation tax – which would be reduced from 30 per cent to 25 per cent – and the abolition of stamp duty on shares.

Chairman of the commission Lord Forsyth insists in his foreword to the report that the changes are realistic and could be achieved over the course of a parliament.

However, Labour and the Liberal Democrats have warned the commission does not say how the tax cuts would be funded. Economic think tanks have said the plans would benefit the rich.

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