Tories begin tax consultation

The Conservative Party has unveiled a series of options for lifting the burden of tax from millions of middle and lower income earners.

A consultation paper published by Shadow Chancellor Oliver Letwin has targeted those on lower incomes who have been dragged into paying income tax since Labour came to power, and people on middle incomes who have been trapped by top rate tax levies imposed by Gordon Brown.

The document is the first of eight consultation papers about the taxation system which the Conservative Party will issue over the coming months. It focuses specifically on income tax and national insurance thresholds.

They represent a menu from which a Conservative government may draw when formulating future budgets.

Mr Letwin said: "Tony Blair claimed that he had no plans to raise taxes at all. That was all talk. By stealthily raising thresholds more slowly than the increase in earnings, Tony Blair has dragged 4.2 million more people into paying income tax, and 1.35 million more people into paying top rate income tax.

"Part-time workers on the minimum wage are now paying tax, and deputy head teachers are paying top rate tax. A change of direction is needed to help people on lower incomes and people trapped in top rate tax."

Mr Letwin stressed that the presence of a particular option in the consultation paper does not constitute any guarantee or promise that it will form any part of any Conservative budget.

The first of the consultation papers is available for download here:

Income tax and NI thresholds

If you wish to respond to this consultation document, submissions should be sent, by 6 December 2004, to:

Rt Hon Stephen Dorrell MP

Chairman of the Tax Reform Panel

Conservative Campaign Headquarters

25 Victoria Street

London

SW1H 0DL