THE MIDDLE classes and motorists will be the first hit by a slew of tax hikes and spending cuts outlined yesterday by the Conservative party.
Tory leader David Cameron warned that if his party comes to power next year the better off will need to dig deep to help repair the UK’s finances.
With total public borrowing set to reach £1 trillion, the Tories would cut tax credits for households earning more than £50,000 and bring in road tolls on newly-built roads, he said.
Scrapping the 50p tax rate for high earners, proposed by Labour, would not be a priority, and it would be several years before the party could consider cutting inheritance tax, Cameron said.
Cutting tax credits to the proposed £50,000 level would mean 130,000 families losing an average £500 a year.
The Institute for Fiscal Studies has suggested that another £1bn a year could be saved by not paying child benefit to middle-income families.
Cameron said he would not axe budgets for overseas aid and the NHS, but cuts would be made elsewhere.
“In saying to the country that we need to reduce public spending, we need to get the budget balance under control, we’ve got to be able to demonstrate to people that this is fair and seen to be fair and that everyone is putting their shoulder to the wheel and sharing in the difficult decisions.
“And that means the wealthy have to pay their fair share.”