Labour Conference: Taxation - Prescott denies `no rise in income tax' pledge tax
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.A CABINET split over taxation opened up yesterday after John Prescott, the Deputy Prime Minister, repudiated reports that Tony Blair had decided to reaffirm the pledge not to raise income tax for the next general election.
The Independent interview with the Prime Minister at the weekend in which Tony Blairruled out raising income tax after the next election set alight the controversy over taxation.
There were mass demonstrations outside the conference hall yesterday by health workers demanding higher pay for the low paid, and higher taxes on the rich. Ken Livingstone, who stepped down from the national executive committee, said: "Blair cannot be serious about not increasing personal taxation."
But the Chancellor will deliver a tough message to the conference today that there can be "no quick fixes, no magic wand" to deliver higher pay, and prosperity.
Gordon Brown will add: "There is no other way, not even the comfort of any soft options, no easy way, no magic-wand solution, no quick-fix easy alternatives to our long-term policies of achieving the goals we share."
Mr Brown will urge delegates not to "throw away" economic prudence as soon as there were problems. He will hail the New Deal programme before flying to the Commonwealth ministers meeting in Ottawa, followed by the G8 in Washington at the weekend.
Embracing the image of the "Iron Chancellor", he will say: "For the economy, our most basic promise of all ... was to restore as an essential objective of government, long-term high and stable levels of growth and employment.
"Our economic competence and our iron resolution, our prudence for a purpose was hard earned and hard won, and we will not sacrifice it for tomorrow's headlines or next week's easy slogans or next month's false solutions and fashionable gimmicks."
The Chancellor also gave the strongest signal so far that the Bank of England will cut interest rates next week. "The reason mortgages had to go up is the result of interest rate decisions to deal with the inflation problem that we inherited - we have now tackled that problem," he said on Sunday.
Like Mr Prescott, Mr Brown is unhappy about having his hands tied over income tax for the next Parliament. But friends said he had lost his appetite for any big hike in personal taxation.
Mr Prescott may take more persuading. He denied on Breakfast with Frost that any decision had been reached by Mr Blair. "He hasn't said that at all as I understand it. He has said that we made our programme for this Parliament and the time will come, appropriately, to make our decisions for the next time."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments