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David Cameron announced today that the Conservatives would abolish income tax on savings for basic rate taxpayers and raise the tax allowance for pensioners by £2,000.
In a speech on Britain's economic future, the Conservative leader said he would find the £4.1bn necessary to pay for these measures by cutting government spending from the start of the 2009 financial year – and not just from 2010, as the Tories have already proposed.
Cameron said the measures were necessary to encourage a culture of savings and would make some people with income from savings up to £7,200 a year better off.
But his proposals to cut the rate at which government spending increases in 2009-10 from 3.4% to 2.6% is likely to be seized upon by Labour as evidence that public services would suffer under the Conservatives.
Earlier Cameron told the prime minister to "get with the programme" and admit that government plans for tackling the recession were not working.
Cameron said he sometimes felt like "shaking" Gordon Brown and saying: "Look, what don't you get? It's a credit crunch; that's what needs to be addressed."
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- David Cameron
- Conservatives
- Economic policy
- Gordon Brown
- Tax and spending
- Credit crunch
- Small business
- Banks and building societies
- Banking
- Recession
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