Cameron team rounds on Tory party tax critics

BRITAIN: The Cameron leadership took its Tory tax critics head-on yesterday, rallying conference with a declaration that it …

BRITAIN: The Cameron leadership took its Tory tax critics head-on yesterday, rallying conference with a declaration that it was "tired of the luxury of opposition" and eager for "the hard choices of government".

The challenge was delivered by shadow chancellor George Osborne to those led by Lord (Norman) Tebbit who were demanding upfront promises of tax cuts now.

"We will not back down. We will not be pushed or pulled. We will stick to our principles. We will do what is right.

"I am not going to write my 2009 budget in 2006, for the British people are sick of politicians who promise more than they deliver."

READ MORE

In a confident and combatant performance Mr Osborne also affirmed the passing of the leadership baton and the ending of an era - telling conference that "the generation that freedom produced" would not let them down.

However, he asserted, each generation in turn had to face its own struggle - "to have the strength of our convictions and the courage of our principles; the strength to prove that hope is always better than fear; the strength to believe that our future can always hold more promise than our past."

At the same time Mr Osborne laid claim to his own Thatcherite inheritance, rebuffing right-wing critics with a history lesson reminding conference of Mrs Thatcher's commitment above all to "sound money".

In a reminder of the party's long years in the political wilderness, the shadow chancellor observed this was "the first time for my generation" that it had a serious chance of winning the next general election.

And he hammered home the message, recalling that Geoffrey (now Lord) Howe was the last successful Conservative shadow chancellor - almost 30 years ago.

Lord Howe had written to him last week, Mr Osborne told conference.

"He wished me good luck and he enclosed a copy of the speech he made to the Conservative conference in 1978. Then, as now, the country was wondering whether we were ready for government.

"That's why Geoffrey said the first priority of the Thatcher government would be to 'conquer inflation' with 'a framework of stability'. That was his priority then and it is my priority now."

With even greater relish Mr Osborne then quoted Mrs Thatcher herself, saying "I am not prepared ever to go with tax reductions if it meant unsound finance".

Challenging the keepers of the Thatcherite flame on their chosen ground, Mr Osborne declared: "Let no one ever portray sound money as a betrayal of Conservative principles. For sound money is the oldest principle of all."

Mr Osborne launched a swingeing attack on Chancellor Gordon Brown's "secret, underhand, stealthy taxation of the British public", pledging to end for good "the monstrosity of the tax affairs of the poorest being more complicated that the tax affairs of the richest". He also confirmed he wanted lower taxes.

"I think we're crazy as a country to be raising our taxes when most of our competitors are cutting theirs," he said.

"I look at Ireland and I see what lower business taxes can achieve. I believe that lower taxes extend the space of freedom in our society.

"I believe they help people to take greater social responsibility over their own lives, and the lives of others." And over the economic cycle, he said, he would want the economy to grow faster than the government.

"But let me tell you something," he insisted: "There is no such thing as a tax cutting shadow chancellor. Surely we must have learnt from three elections defeats this simple truth? We must win the argument on the economy."

And he warned: "We will never do that if people believe our tax policy comes at the expense of their public services.

"That will not happen . . . And we will never ever win the argument on tax, or anything else for that matter, if people fear for one moment that we might endanger the stability of the economy."