Barker lashes Labour's tax plans

Gregory Barker responded this week to the Government's new tax and spending proposals by warning of Labour plans for higher taxes and of record levels of public debt included in the small print.

He cited:

'¢Above-inflation hikes in council tax are to be forced on local authorities. The Government is planning for a 4.5% increase in council taxes, which would push up the typical bill up by 62 a year on family homes from this April.

'¢National Insurance will be increased for workers and for local firms. This jobs tax will discourage businesses from hiring staff, and mean anyone earning 20,000 a year or more will be worse off under the Pre-Budget Report.

'¢National debt will hit 1,000,000,000,000 (one trillion pounds), forcing even higher taxes in due course to pay back the nation's overdraft.

'¢Plans are being drawn up by the Government to increase VAT to 18.5% after the next general election, with Gordon Brown even considering a hike to 20%. This would add 500 a year to the shopping bills of families.

Mr Barker said: "Labour's Pre-Budget Report is stuffed full of tax cons rather than tax cuts.

"Gordon Brown's tax plans aren't about helping our economy, they're just intended to help him cling on to power.

"I am very concerned of the effect of record levels of debt, higher council tax and higher National Insurance on families and firms in Bexhill & Battle, with the prospect of large hikes in VAT around the corner."