Select committee chair calls for tax cuts

Date: 24th October 2008

The chairman of parliament's Treasury select committee has called for taxation cuts and increased public spending.

John McFall believes that such a fiscal strategy would enable the UK's stalled economy to spend its way out of potential recession.

Writing in the Guardian, he warned that this did not necessarily mean lower taxes for all, but instead a staggered approach intended to help those on smaller incomes.

Mr McFall explained: "Now is the time for further reform of tax allowances to take millions of low-paid people out of income tax altogether, and benefit many millions more basic-rate taxpayers."

He added that such a monetary policy needed to be supported by the taxpayers, meaning that the government would have to take where the extra money would be spent into careful consideration.

A report published last week by the Organisation for Economic Co-operation and Development showed that the UK had one of the most favourable taxation climates in Europe, contrary to popular opinion.