The Same Old Song: £21 Billion Tax Cuts

Remember Black Wednesday? Boy, what a day that was! Quick refresher for you: Black Wednesday, 16 September 1992, was the day Britain crashed out of the ERM - a system for tying the pound and other currencies' values to that of the German mark.

Throughout the day the PM John Major and his chancellor Norman Lamont raised interest rates from 10% to 12% to 15% and authorised the spending of billions of pounds in a doomed effort to keep the pound within the range allowed by ERM.

I mention this because skulking behind Lamont in the TV coverage is a young David Cameron. David was Lamont's advisor as all came crashing down around their ears. He was there when it was thought record unemployment was a "price worth paying" too.

With this in mind it was interesting to see the Tories launch their Tax Report. With no sign of spreading the proceeds of growth between tax cuts and public spending anywhere it outlined plans for £21 billion tax cuts.

Using the new compassionate Tory policy test of how it helps the least well-off in society I listened with interest.

There were a series of proposals that saw the poorest families, pensioners and single parents all get absolutely zilch while the wealthiest househlds would all benefit, with the richest trousering up to an extra £1000 per year.

Plus their idea to abolitish inheritance tax sounds great but in reality only 6% of the wealthiest estates would benefit.

My favourite proposal, however, is the abolition of stamp duty on shares. This would cost £4 billion and do absolutely nothing for millions of families. That is compassionate conservatism at its very best.

But how to pay for tax cuts worth £21 billion. Something has got to give and that will be cuts to public spending hitting schools, hospitals and our police. It's the same old song from the same old Tories.

What can you get for £21 billion these days anyway? Well that's 525,000 teachers or 600,000 nurses or 210,000 doctors or building 840 new schools or 60 hospitals.

You decide where £21 billion is best spent.