Taxes will rise, says expert

Date: 16th September 2008

British taxes will continue to rise, whichever political party wins the next election, a leading financial expert has warned.

The news comes on the back of the Liberal Democrats party conference in Bournemouth, where leader Nick Clegg announced he would cut 4p from the basic rate of income tax.

One expert believes that even if the party were elected, no such promise could be kept, as "politics and economics are hopelessly out of sync."

Writing for ft.com, Philip Stephens said: "Britain's politicians are promising tax cuts. Pay no attention.

"Even before the latest hurricane on the global financial markets, there was one safe prediction to be made about the next government: whatever its political colour or pre-election promises, it will raise taxes."

The Conservative Party have also made their own tax-cut promise, pledging to scrap inheritance tax for estates worth under £2 million; a policy which Mr Philips dismisses as a "tax cut skewed towards the well-off".

Research published by HSBC yesterday (September 15th) revealed that 80 per cent of small businesses expect to grow in the next year.