Spend More Wisely, Tax More Fairly - Taylor

12.00.00am GMT Sat 15th Mar 2003

GORDON BROWN IN DENIAL ABOUT STATE OF ECONOMY Liberal Democrats Would Spend More Wisely, Tax More Fairly.

Speaking at the Liberal Democrat Spring Conference, Matthew Taylor MP, Liberal Democrat Shadow Chancellor, will accuse Chancellor Gordon Brown of being reluctant to face the reality of the economic problems facing Britain. On the Chancellor's record he will say:

"Politicians need to be clear and transparent about the situation their citizens face. It's a time for acknowledging harsh realities.

"Gordon Brown appears to be in denial, clinging to over optimistic forecasts, unable to accept the new realities. The Chancellor blames the world for Britain's problems. But he's missing the fact that Britain has a few problems all to itself.

"The truth is Brown's figures are now so unreliable, Treasury spin so out of control, that probably even Brown has no idea how far his figures can be relied on. There are serious doubts over the trend growth rate, corporation tax, receipts from indirect taxes, and off balance sheet finances. So we make a specific proposal to clean up the budget act. A new requirement on the National Audit Office to do just that - audit government budgets."

On inequality he will say:

"Under a Labour government, in 2003, the poorest 20% pay more of their income in tax, than the richest 20%. In fact, the richest 20% pay, overall, just 35% in tax. The poorest 20% pay 40%. So this is our approach. We will reduce unfair taxes, by taxing more fairly.

"Successive Conservative and Labour Governments forced up council tax, a highly regressive tax, hitting hardest those who can least afford to pay it. Help is needed immediately. So using the rest of the funds from our 50p rate on the super rich, we'd immediately cut £100 off every Council Tax bill in the country. In the long run Council Tax has to go. We will first cut, then axe, the Council Tax."