Shadow chancellor calls for tax cuts

Ed Ball, the Labour shadow chancellor, has put forward his suggestions for tax cuts to stimulate the UK economy, ahead of the Budget speech to be given next month.

Mr Ball has echoed deputy prime minister Nick Clegg's call for an increase in the threshold for payment of income tax to £10,000 to be brought forward, and also proposes a cut in the rate of VAT. He believes the "fastest and fairest" way to grow the economy is to cut VAT, and that it could be paid for by borrowing as opposed to introducing more spending cuts. He called the previous decision to increase VAT a mistake, but Conservative deputy chairman Michael Fallon commented that Mr Ball's proposals would put the UK's triple A credit rating at risk as more debt would be created in order to fund the tax cuts he set out.

The Budget speech is due next month, and of particular interest to many will be the announcement made on the income tax threshold which has been a matter of very public disagreement among the coalition parties, with the Conservatives to date committing only to raise it to £10,000 by 2015, while the Lib Dems continue to push for the increase to happen earlier.

If you live in Northern Ireland and require legal advice in respect of income tax, capital gains tax, inheritance tax, or general tax planning, contact Wilson Nesbitt solicitors in Belfast or Bangor by calling 0800 840 9288.

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