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British PM vows to stick to long-term economic plan, but cut tax selectively

(Xinhua) Updated: 2014-10-01 21:37

British PM vows to stick to long-term economic plan, but cut tax selectively

Britain's Prime Minister David Cameron makes his keynote speech on the final day of the Conservative Party Conference in Birmingham, central England October 1, 2014.[Photo/Agencies]


LONDON - David Cameron, British Prime Minister, Wednesday vowed to stick to the long-term economic plan over the future five years, if the Conservative Party could win the general election next year, means that the government will not abandon its fiscal austerity scheme. But the PM also announce tax cut measures in order to secure the vote in 2015.

LONG-TERM PLAN

Delivering a speech at the Conservative Party conference in Birmingham, Cameron said the past four years of government have been about "laying the foundations" for Britain's future growth by steering the economy to recovery, but that the next five years will be about improving people's living standards, including create more jobs, help to buy homes, and lower taxes.

"These are only possible if the government sticks to its long-term economic plan," stressed Cameron.

The PM also said he wants to secure a working majority at the general election, rather than the current coalition with the Liberal Democrats Party.

On September 29, George Osborne, the Chancellor of Exchequer of Britain, said in the conference that a future Conservative government would freeze benefits paid to people of working age for two years, which would save three billion pounds and affect around 10 million Britons.

But the proposal would not include pensions, disability benefits and maternity pay, he added.

TAX CUT

The PM also announced taxes cut measures to alleviate the living burdens of the so-called 30 million "hard working" people. A future Conservative government will raise the tax free personnel allowance from 10,500 pounds (17,000 U.S. dollars) to 12,500 pounds, pledged Cameron.

And due to "far too many" people have been dragged into the 40 percent tax rate, a future Tory government would raise the threshold from 41,900 pounds to 50,000 pounds, added Cameron.

While two days ago, Osborne pledged to scrap the 55 percent tax rate on inherited pension funds. The government predicts that the new policy will cost approximately 150 million pounds per year.

Meanwhile, the government will "put a stop" to the "Extraordinary lengths on tax evasion" of some technology groups, Osborne noted.

The conference, which is held from September 28 to October 1, is the last gathering for the Conservative Party prior to the 2015 general election. (1 pound = 1.62 dollars)

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