Howe to head Tory tax review

George Osborne attacked the government's tax record

Friday, 15, Feb 2008 12:00

Former chancellor Geoffrey Howe is to lead a Conservative taxation review aimed at ending "stealth taxes" in Britain, the Tories have announced.

George Osborne announced the review, led by "senior tax specialists" and politicians, in a speech to thinktank Policy Exchange this morning.

The shadow chancellor said he expected the proposed reforms would require the Treasury to make technical changes to the tax system in the autumn before the Budget to allow for more parliamentary scrutiny.

"By the time the legislation reaches the statute book it will have been thoroughly examined and scrutinised by the people who will have to implement it. That means no more stealth taxes," he said.

Mr Osborne attacked the government for lacking a long-term strategy on taxation reform.

He said chancellor Alistair Darling would "never recover a reputation for competence" after problems at Northern Rock and confusion over capital gains tax and non-domicile taxation.

The government's "hastily cobbled together package" fails to strike the right balance between fairness and competitiveness, he added.

Mr Osborne said: "The very public dithering from the prime minister and the chancellor has created damaging uncertainty in the minds of the most internationally mobile of people."

Apparently acknowledging the Conservatives would not be able to quickly reverse spending on public services increased under Labour, the shadow chancellor said there was "no credible quick-fix solution" to high taxation and "large government".

"Many Conservatives understand that the pressures on public spending from defence, law and order, education and health care are only likely to increase.

"So the right solution is to reform public services, improve their productivity and stick to sustainable spending plans over an economic cycle," he concluded.