Cut taxation, not base rate, says expert

Date: 6th February 2009

The government has been urged to cut taxation rather than let the Bank of England continue its policy of relentless rate cutting.

According to the financial website Fool.co.uk, both consumers and business - such as limited companies - would be better served with lower taxation.

An expert from the online portal has claimed that any reduction in tax could kick-start the economy, but both the government and Bank insist on further digging themselves into a hole.

David Kuo, a spokesman for Fool.co.uk, said: "Tax cuts would provide an immediate stimulus to business and a much-need boost to household finances.

"Failing to do so is tantamount to saying that it knows best, and the evidence would strongly suggest otherwise."

Earlier this week, Chancellor Alistair Darling suggested to a House of Lords select committee that he would be willing to implement a taxation break for pensioners at the March budget.