Osborne: Economic stability comes first

Thursday, 19, Oct 2006 12:00

The shadow chancellor has insisted the Conservatives will not introduce unfunded tax cuts after a Tory tax reform commission report proposed drastic reductions in personal and business taxes.

"We are not going to commit to £21 billion worth of unfunded tax cuts now or in the future," George Osborne said.

The Tories would give "serious consideration to proposals to reduce and simplify taxes", he said but stressed: "Sound money means that stability will always come first before promises of tax cuts.

"We will not be promising upfront, unfunded tax reductions at the next election."

However, he argued the current system was "too complicated", saying this was "damaging Britain's ability to compete in the world".

His party would outline tax plans "in due course", Mr Osborne said, but insisted he was "not going to write the 2009 budget in 2006".

"Some [of the proposals] we will accept, we will modify others, and some we will reject," he added.