Cameron hints at tax credit cuts

Date: 28th July 2009

Many households in the UK might no longer be able to save tax through claiming tax credits under a Conservative government, the leader of the opposition has indicated.

In an interview with the BBC, David Cameron said that all Britons needed to help out in order to get public deficits "under control".

Government debts are expected to rise by £175 billion this year, with public spending picking up the slack for falling tax revenues and economic output caused by the global credit crisis.

Over the long term, it is likely that public spending will be cut and certain taxes for companies and individuals raised in order to reduce these deficits.

Accordingly, Mr Cameron suggested that tax credits for households whose members earned over £50,000 might be reduced in future.

"We've got to be able to demonstrate to people that this is fair and seen to be fair and that everyone is putting their shoulder to the wheel," he added.

"That means the wealthy have to pay their fair share."

The Conservative leader also suggested in the interview that, in government, he would not move to immediately reverse the current Labour government's decision to hike income tax for those earning over £150,000 a year from 40p in the pound to 50p.