Tory tax proposals 'don't add up'

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A Conservative group's proposals to simplify taxation and reduce the tax burden by £21bn "simply don't add up", chancellor Gordon Brown has said.

Mr Brown told the BBC the Tories had failed to learn the lessons of the past - putting economic stability at risk.

The report by a commission set up to advise the Tories on tax, suggested cuts in personal and business taxes.

Shadow chancellor George Osborne said the report was not Tory policy, but a "menu" of options to choose or reject.

Shadow defence secretary Liam Fox hit back at Mr Brown's comments, saying: "Economic stability will be the number one priority for us...We will only give tax cuts when we believe it is sound to do so."

'Great failure'

Among recommendations from the Tax Reform Commission were reducing the basic income tax rate, abolishing the lower 10% rate, replacing inheritance tax and abolishing stamp duty on shares.

We will only give tax cuts when we believe it is sound to do so Liam FoxShadow defence secretary

The proposals add up to £21bn of tax cuts over the first term of a Conservative administration.

But Mr Brown told the BBC that the Conservatives' "great failure" over the past 14 years "was that they put the stability of the economy at risk by having unfunded promises, telling people they could afford the things they could never afford".

He added: "It's also clear that if they were ever to be implemented, then most of the benefits would go to the people who are the wealthiest members of the community and not to the average citizen in the this country."

Mr Osborne has said the Conservatives would not promise any tax cuts at the next election, and said any changes would be "revenue neutral".

'Golden legacy'

And the Tories have said it is too early to give details of their tax and spend plans.

Mr Fox said Mr Brown had inherited "a golden economic legacy" from the Conservatives, but was in the process of "screwing up" the economy.

He accused the chancellor of "massively mortgaging the future" by overspending and creating a pensions crisis, and said he had generated PFI projects which would be paid for by generations to come.

Earlier this week former minister Lord Forsyth, head of the tax commission, told the BBC he was not calling for upfront tax cuts.

"We weren't asked to devise a strategy for the Conservative Party to win the next election," he said.

"We were asked what is happening internationally on tax, what do we need to do to have a simpler, fairer, flatter tax system and that is what our proposals do."