THE BATTLE to win the next British general election began in earnest yesterday with a furious argument over the Labour Party’s allegations that there is a £34 billion gap in the Conservatives’ tax and spending plans.
The row partly overshadowed the launch by Conservative leader David Cameron of a pledge to protect the health service from the cutbacks that will have to be imposed after the election, regardless of who wins.
In a 1,000-strong national billboard campaign, launched in conjunction with a London press conference, Mr Cameron said: “We can’t go on like this. I’ll cut the deficit, not the NHS.”
Promising to scrap targets for doctors and nurses imposed by Labour, Mr Cameron insisted he would devolve powers from Whitehall to local councils and health authorities to let them set their own priorities.
In addition, the poorest regions, which have below-average life expectancy and health standards, would get a multi-billion pound cash injection “on results” if they cut down on illnesses and improved living standards.
However, the Conservatives’ tax and spending plans were sharply criticised by Chancellor of the Exchequer Alistair Darling, in a 100-page analysis of Mr Cameron’s promises over the last two years.
Mr Darling said the examination – which was partly carried out by taxpayer-paid treasury officials – proved that Tory tax cuts would cost £21 billion a year by the end of the next parliament, while commitments to reverse tax rises would cost £13.3 billion annually.
Promises already made by the Conservatives would cost £11 billion more, while the party’s spending cuts plans would save just £6.6 billion. Tory tax rises would reap just £5.1 billion, Mr Darling alleged.
“What is clear is that the Conservatives have so far only set out how to raise a fraction of the money needed to pay for their plans to introduce new tax cuts, reverse current tax changes and fulfil their spending commitments.”
However, Mr Darling has, perhaps, caused Labour some difficulties by his indication that the 50p tax rate – due to come into force next April for those earning more than £150,000 – is not a temporary increase but a permanent one.
Facing strong questioning at Labour’s headquarters near the Houses of Parliament, the chancellor said: “It is necessary to raise this money over a four-year period. No chancellor would want to put a time limit on any taxes.”
Raising memories of Labour’s actions before the Iraq War, shadow chancellor George Osborne described Mr Darling’s document as “a dodgy dossier”.
The decision by Mr Darling to involve treasury officials in the preparation of the document has infuriated the Tories – although the costings were made by way of parliamentary questions and Freedom of Information requests.
Last night, it emerged that top treasury official Sir Nicholas Macpherson had issued an order banning the use of all internal treasury statistics in the document, although some still appeared in it marked as “internal use only”.