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| Version 0 | Version 1 |
|---|---|
| VAT rate cut a tragedy - Tories | VAT rate cut a tragedy - Tories |
| (30 minutes later) | |
| Conservative leader David Cameron has described the government's VAT rate cut as a "tragedy", warning that it will add further to national debt. | Conservative leader David Cameron has described the government's VAT rate cut as a "tragedy", warning that it will add further to national debt. |
| He said the temporary reduction from 17.5% to 15% was "wrong in the short term and wrong in the long term". | |
| The UK could not afford this fiscal stimulus, as government debt was already too high. | The UK could not afford this fiscal stimulus, as government debt was already too high. |
| Every child born was going to have "£17,000 of Labour debt hanging over them", he told an audience in London. | Every child born was going to have "£17,000 of Labour debt hanging over them", he told an audience in London. |
| 'Not working' | 'Not working' |
| Mr Cameron said the government was "wrong about the past, getting it wrong in the present and getting it wrong about the future". | Mr Cameron said the government was "wrong about the past, getting it wrong in the present and getting it wrong about the future". |
| Talking about the economic downturn, he added: "At its heart it is a debt crisis." | Talking about the economic downturn, he added: "At its heart it is a debt crisis." |
| Individuals, companies and the government all owed too much, Mr Cameron said. | Individuals, companies and the government all owed too much, Mr Cameron said. |
| The VAT cut would mean a £12.5bn reduction in government revenue, he added. | The VAT cut would mean a £12.5bn reduction in government revenue, he added. |
| Mr Cameron said: "The tragedy of it is that it's both wrong in the short term and in the long term. | Mr Cameron said: "The tragedy of it is that it's both wrong in the short term and in the long term. |
| "It's foolish in the short term, as it's not working... It's also foolish in the long term because it's adding to our national debt and it's going to have to be paid back." | "It's foolish in the short term, as it's not working... It's also foolish in the long term because it's adding to our national debt and it's going to have to be paid back." |