Tuesday February 5, 09:17 AM
UK's Darling hints at tax cuts in upcoming Budget
LONDON (Thomson Financial) - Chancellor of the Exchequer Alistair Darling last night hinted that he may use his Budget next month to cut taxes, reported The Daily Telegraph.
Darling told bankers last night that he would use the Budget
to 'raise growth' in the wake of the financial market turmoil, the paper said.
'In the Budget I will continue to take the decisions necessary to ensure the stability of the economy; to raise growth and to effectively manage our public finances,' said Darling.
'Fiscal policy will continue to support monetary policy.
'We are able to do what is right to support growth in these uncertain times.'
However, critics have recently warned that he will actually need to raise taxes in his upcoming budget if he is to meet two fiscal rules.
These are the golden rule -- balancing excluding investment over the economic cycle -- and the sustainable investment rule which requires that public sector net debt, as a percentage of GDP, should not exceed 40 pct of national income.
Darling also said he would urge the G7 group of leading industrialised countries at its meeting in Tokyo this weekend to resist protectionism and increase transparency as economies around the world slow in the wake of the credit crunch, the paper reported.
He also expressed confidence that though 'these are uncertain times', the UK economy remains stable and strong, and should be able to withstand the fallout from the credit crunch.
'We do not yet know the full extent of the slowdown affecting the US. But I believe we will get through this turbulence,' said Darling.
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