Tory Tax-Plans Non-Starter

Conservative proposals to cut inheritance tax for the richest families don't add up. In a press conference this morning, David Cameron stated that his proposed inheritance tax cut would be paid for by taxing non-doms, but research shows that there would be a shortfall of over £1.5bn a year on the Conservative proposals.

Mr Cameron said:

"Every other spending pledge we have made, every tax pledge we have made, is fully costed and fully set out. If you take for example the pledge on inheritance tax, which we've said is not for a first budget but is a pledge for a parliament, that is to be paid for by taxing the non doms, the people who live here but do not pay full tax here."

Liberal Democrat research shows that this simply does not add up. The proposed tax on non-doms would fall nearly £7bn short of covering the cost of the inheritance tax cut. A document is attached detailing the shortfall. Commenting on David Cameron's decision to stick with his proposed inheritance tax cut and his assertion that it will be paid for by taxing non-doms, Liberal Democrat Shadow Chancellor, Vince Cable said:

"It's unbelievable that the Tories are still planning to cut taxes for a handful of millionaires when the majority of people across the country are feeling the squeeze. We need fair tax cuts that put money back in the pockets of ordinary people.

"The Tory sums simply do not stack up. It is irresponsible and highly misleading for George Osborne to continue to pretend that they do. If Osborne and Cameron can't get these simple sums right how can they possibly be trusted to run the economy."