Two MPC members have warned that raising taxes to bring in new revenues to tackle the deficit or pay for spending plans would not work.
Dame DeAnne Julius said Britain was already close to “hitting the ceiling” on the amount of revenue the government could raise through higher taxes. Meanwhile,
Ian Plenderleith described rhetoric concerning ending austerity as “complete illogical nonsense”. “[Those who] advocate higher spending now financed
by higher borrowing are essentially saying, we don’t want to cut our lifestyle now, we want to make our children poorer and our grandchildren poorer,”
Elsewhere, a new survey conducted by KPMG of 600 businesses across Britain showed leaders were “much more optimistic about the prospects of growth under
a Conservative regime than under Labour” Simon Collins, UK chairman of KPMG, said "managers are worried about uncertainty and the potential for intervention
and even demonisation from politicians."
Separately, the FT’s Chris Giles points out that all of the parties' tax and spending plans are based on the OBR’s prediction of a productivity recovery,
which is far from certain.
The Daily Telegraph, Business, Page: 1, 4 The Daily Telegraph, Business, Page: 2 Financial Times, Page: 6 Financial Times, Page: 13