GEORGE Osborne has been urged by Labour to implement “significant tax cuts” in next month’s Budget.
Shadow chancellor Ed Balls suggested the Government could cut income tax by 3p, raise the income tax threshold to above £10,000 or increase tax credits for working people.
He said it would be “fairer and quicker” to cut VAT – as Labour has previously called for – but claimed the chancellor would be unwilling to admit his “mistake” in raising the sales tax to 20 per cent.
Mr Balls warned of lasting damage to the economy if the coalition did not take action to help squeezed households and promote growth.
“Without decisive action in the Budget to boost growth, we are in for a lost decade of slow growth and high unemployment which will leave a permanent dent in our nation’s prosperity,” he said.