Business World

Saturday 24 March 2018

Cameron makes tax-cut pledge as UK economy 'heals'

David Cameron will 'give people back their hard-earned cash'
David Cameron will 'give people back their hard-earned cash'

Scott Hamilton

BRITISH Prime Minister David Cameron said the UK economy is "healing" and that should allow the government there to cut taxes.

"As we start to see the economy grow stronger – and it is growing stronger – as we start to see the country improve, actually I want to give people back some of their hard-earned money and try to reduce their taxes," Mr Cameron said in an interview with the BBC yesterday.

"Your economy does better if you say to people you've worked hard, you've done the right thing, here is some of your own money back in a tax reduction."

His comments come as the Government here grapples with whether to ease up on the austerity programme in October's Budget or stick with the planned €3.1bn combination of tax hikes and spending cuts.

With recent data showing strength in the UK economy, Mr Cameron may find it easier to achieve his deficit-reduction goals as part of the biggest fiscal squeeze since World War II.

Due to a weaker-than-expected recovery after the global financial crisis, Mr Cameron's Conservatives and their Liberal Democrat coalition partners have had to extend budget cuts until 2017-18, beyond the country's next general election in 2015.

The UK government's fiscal plans show "further need for spending reductions in order to meet our deficit targets" and "don't include any plans for tax rises", Mr Cameron said.

The British public have "set us this task of trying to turn the country round, sort out the deficit, get the economy moving again, build a country where hardworking people get rewarded", Mr Cameron said.

Measures of services, manufacturing and construction all improved in June and recent reports have suggested rising house prices and falling unemployment are spurring consumer confidence. (Bloomberg)

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