Britain will soon be able to ditch George Osborne’s austerity and embrace a programme combining cuts in taxation with balancing rises in spending on key services such as health and education.
We – who correctly predicted that the Treasury and the OBR would have to revise their figures – say that from 2020, the Treasury will have a surplus of more than £25 billion a year and rising to play with. This would enable a 2 per cent cut in the 40 per cent top rate of tax and in corporation tax on business profits. It would also create scope for a cut in the punitive “supertax” rate of income tax of 45 per cent. At the same time, the Government would have an extra £14 billion a year to spend on boosting spending on public services.
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