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| Tory tax cut 'not high priority' | |
| (about 2 hours later) | |
| Cutting inheritance tax would not be a high priority for an incoming Tory government, Ken Clarke has said. | Cutting inheritance tax would not be a high priority for an incoming Tory government, Ken Clarke has said. |
| The shadow business secretary told the BBC its main economic goals would be to cut public debt and restore growth. | The shadow business secretary told the BBC its main economic goals would be to cut public debt and restore growth. |
| The Tories' pledge to take millions of families out of inheritance tax in September 2007 was seen as a key moment in reviving their political fortunes. | The Tories' pledge to take millions of families out of inheritance tax in September 2007 was seen as a key moment in reviving their political fortunes. |
| Labour said the more Conservative economic policies came under scrutiny "the more they fall apart". | |
| 'Tremendous mess' | 'Tremendous mess' |
| Recent indications that the Tories will not reverse Labour's planned tax rises for the rich have already caused internal ructions. | |
| Increasing income tax for top-earners to 45% from 2011 would be "difficult to avoid", shadow chancellor George Osborne has said - a stance backed up by Mr Clarke and foreign secretary William Hague. | Increasing income tax for top-earners to 45% from 2011 would be "difficult to avoid", shadow chancellor George Osborne has said - a stance backed up by Mr Clarke and foreign secretary William Hague. |
| But the Conservative Mayor of London Boris Johnson has said the move would stifle British enterprise, a view Mr Clarke said was "just wrong". | But the Conservative Mayor of London Boris Johnson has said the move would stifle British enterprise, a view Mr Clarke said was "just wrong". |
| In recent weeks, senior Conservatives have stressed the party will face extremely tough choices if they win the next election given the state of the public finances. | In recent weeks, senior Conservatives have stressed the party will face extremely tough choices if they win the next election given the state of the public finances. |
| The Conservatives insist cutting the overall burden of tax for families remains a long-term objective and have pledged to freeze council tax bills for two years among other proposals. | The Conservatives insist cutting the overall burden of tax for families remains a long-term objective and have pledged to freeze council tax bills for two years among other proposals. |
| But they have declined to rule out tax rises after the next election. | But they have declined to rule out tax rises after the next election. |
| We have been calling on the Tories for months to scrap this unfair giveaway Angela Eagle, Treasury minister | |
| Mr Clarke told the BBC's Politics Show the priority was to stabilise the public finances and to do so in a way which hopefully did not necessitate tax rises for the majority of people. | Mr Clarke told the BBC's Politics Show the priority was to stabilise the public finances and to do so in a way which hopefully did not necessitate tax rises for the majority of people. |
| Tough choices would be required because of the "tremendous mess" the Tories would inherit if elected, he stressed, with debt levels "of a kind never previously seen". | |
| On inheritance tax, he said raising current thresholds was an "aspiration" which the party retained and hoped to get around to "sooner or later". | On inheritance tax, he said raising current thresholds was an "aspiration" which the party retained and hoped to get around to "sooner or later". |
| At the 2007 party conference - at a time when a general election was considered imminent - Mr Osborne said the Tories would raise the threshold for inheritance tax from £300,000 to £1m - potentially taking nine million families out of the tax. | At the 2007 party conference - at a time when a general election was considered imminent - Mr Osborne said the Tories would raise the threshold for inheritance tax from £300,000 to £1m - potentially taking nine million families out of the tax. |
| But Mr Clarke stressed: "I don't think we are going around any longer saying this is something we are going to do the moment we take power. | But Mr Clarke stressed: "I don't think we are going around any longer saying this is something we are going to do the moment we take power. |
| "We will have to consider when we can afford to do that. I don't think anyone is saying any different to that" | |
| The BBC's political correspondent Carole Walker said the inheritance tax pledge seemed like a firm commitment and any suggestion it was now being downplayed would be highly significant. | |
| Labour said David Cameron must say whether he agreed with Mr Clarke's assessment. | |
| "We have been calling on the Tories for months to scrap this unfair giveaway to the wealthiest few thousand estates," said Treasury minister Angela Eagle. | |
| "What is clear is that the more Conservative economic policies come under scrutiny the more they fall apart." | |
| 'Being honest' | 'Being honest' |
| Earlier, Mr Hague told the BBC's Andrew Marr show that reversing the 45% tax rate move for people earning more than £150,000 a year would not be a priority. | Earlier, Mr Hague told the BBC's Andrew Marr show that reversing the 45% tax rate move for people earning more than £150,000 a year would not be a priority. |
| Mr Hague acknowledged there were "disadvantages" in raising taxes and that many people believed a higher tax burden was a disincentive to enterprise. | Mr Hague acknowledged there were "disadvantages" in raising taxes and that many people believed a higher tax burden was a disincentive to enterprise. |
| But he said: "We are going to have to get a grip of this country's debt. We have a government that is planning to double the national debt in the next five years. Mr Johnson said the tax rise sends out the wrong signals to entrepreneurs | But he said: "We are going to have to get a grip of this country's debt. We have a government that is planning to double the national debt in the next five years. Mr Johnson said the tax rise sends out the wrong signals to entrepreneurs |
| "Everyone out there in the streets know we can't carry on like that." | "Everyone out there in the streets know we can't carry on like that." |
| "We are going to be honest with people. There are going to be some tough and difficult choices." | "We are going to be honest with people. There are going to be some tough and difficult choices." |
| David Cameron said recently the rich would have to pay their "fair share" to rescue the economy. | David Cameron said recently the rich would have to pay their "fair share" to rescue the economy. |
| This stance has angered, among others, former Cabinet minister Lord Tebbit and London Mayor Boris Johnson who warned that "clobbering the rich" would be bad for business. | This stance has angered, among others, former Cabinet minister Lord Tebbit and London Mayor Boris Johnson who warned that "clobbering the rich" would be bad for business. |
| Mr Johnson said it would send out the wrong signal and "deter enterprise". | Mr Johnson said it would send out the wrong signal and "deter enterprise". |
| But Mr Clarke said his Tory colleague was "just wrong" on this and described the planned 45% tax band as largely "symbolic". | But Mr Clarke said his Tory colleague was "just wrong" on this and described the planned 45% tax band as largely "symbolic". |
| "It is not going to raise much money. It is not going to turn off entrepreneurship," he added. | "It is not going to raise much money. It is not going to turn off entrepreneurship," he added. |