LABOUR’s shadow chancellor Ed Balls yesterday called for an income tax cut for low paid workers to help kickstart the economy.
Balls said the government’s combination of spending cuts and some tax rises was “the economics of the lunatic farm” and said urgent action was required to return the country to growth.
“I think the fastest and best way to get the economy moving, help families and get the deficit down would be a VAT cut,” he told the BBC. “If George Osborne would like to cut the basic rate, we would support him.”
He also called for a national insurance tax cut to benefit small businesses.
“The only reason why they won't now change course is to avoid their own political humiliation,” Balls told the BBC’s Andrew Marr Show.