How will the Conservative party react to the pre-budget report?
The pre-budget report contained a number of ticking time-bombs for the UK taxpayer but also a number of traps for the Conservative party to consider. The new 45% tax band is nothing more than a gesture as it will only raise in the region of £5 billion a year but it puts the Conservative party in a difficult position. If they are seen to fight the introduction of a new tax band this will alienate those in the middle left of the UK and if they fail to question the move that could alienate core Tory supporters.
The Conservative party has been very light on detail as yet but they have suggested they would pull in public spending and introduce tax incentives to refloat economy in due course. However, until we see figures relating to these plans it is impossible to compare the Tory party strategy to that of Labour.
The financial press believe that Labour is trying every trick in about to extrapolate Tory thoughts on future taxation and public spending so that they can criticise these to the UK public. As yet the Tory party has resisted the urge to release their plans and they have little reason to do so prior to the election.
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