Clarke admits Tories could raise taxes

Ken Clarke says a Conservative government wouldn't "rule out" tax increases

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Sunday, 03, Jan 2010 10:02

By Anisa Kadri.

Ken Clarke has admitted that increasing taxes to reduce the UK's budget deficit is a possibility should the Conservatives come to power in the next general election.

In an interview with the Sunday Telegraph, the shadow business secretary said that it would be "folly" to "rule out" tax increases taking into account the UK's present economic climate.

His thoughts on tax came when he was asked about raising VAT: "When you're the most indebted country in the Western world... then you cannot start promising you are not ever going to start increasing taxation."

He also said that tax was something Conservative governments tried to "avoid" but reminded readers that he used tax measures during the recession of the 1990s.

However, he promised that a Tory government would try to "minimise" the need for tax by controlling public spelling, adding that the Conservative leader David Cameron is having to "struggle" to get his plans across to the British public at the moment.

According to the BBC, a Conservative spokesman declined to comment on Mr Clarke's interview.

Meanwhile, Mr Cameron's speech at the Oxford School of Drama on Saturday focused on how the Conservatives plan to cut back on public spending.

To this effect, he discussed a year-long freeze on public sector pay and bringing forward the planned increase in the age one is eligible to claim a state pension, but he only touched on taxes, saying he would cut corporation tax.

In last month's pre-Budget report, chancellor Alistair Darling outlined measures Labour would use to reduce the budget deficit, including a public sector pay cap and an increase in national insurance, both of which come in from 2011.