FASB launches codification initiative

News Article - 22 January 2008
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Conservative leader David Cameron has said that Gordon Brown's plans to cut taxes could lead to a "tax bombshell".

Speaking in the House of Commons, he said that the prime minister's plans would require more borrowing by the government, which would lead to inflated taxes in the future.

Mr Cameron warned of a "borrowing bombshell which will soon become a tax bombshell" and criticised Mr Brown for mentioning a "consensus" between G20 nations on using budgetary measures to get through the economic downturn.

"The real international consensus is that it's only the countries that have been fiscally responsible that are best placed to act now," he said.

"Borrowing £30 billion now will mean an income tax bill for the average earner of nearly £1,500 later."

Mr Cameron concluded by saying that tax cuts should be for life, not just for Christmas.

The tax cuts are a short-term solution which would be paid back by "increased receipts", employment minister Tony McNulty later told the BBC.

He said the move was "about getting back into equilibrium as early as possible".

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