Prime Ministers Statement On Tax Increases

EDM number 330 in 1993-94, proposed by Alan Beith on 12/01/1994.

That this House notes the recent statements made by the Prime Minister on Breakfast with Frost in which he expressed regret at having to raise taxes because of the recession after having made pre-election commitments to reduce taxes because of the recession after having made pre-election commitments to reduce taxes and stated 'I did not expect that we would have to put up taxes ... If I had thought that I would have indicated the reverse"; reminds the Prime Minister that the pre-election promises were made at the time when the recession was at least 25 months old and nearing its end, and that in April 1992 the public sector borrowing requirement for 1992-93 was projected by the Treasury at ú30 billion and rising; reminds the Prime Minister that at that time most forecasters estimated that at least half of that ú30 billion deficit was structural, implying that taxes would have to rise by some ú15 billion; and therefore notes that the Prime Minister's statements are in conflict with the economic realities fully known to him before the election and believes that he cannot evade his election promises so glibly.

This motion has been signed by a total of 30 MPs.