Leading economists attack Cameron on tax

Public spending cuts would lead to higher growth

In a series of articles published this week in the IEA journal Economic Affairs *, four leading economists** criticise the Conservative leadership for failing to support policies to cut taxes and public spending.

The authors praise the recent report of the Conservative Party Tax Reform Commission, led by former Cabinet Minister Lord Forsyth, as ‘a serious and economically literate analysis’ and ‘a solid and impressive piece of work’. However, the policies recommended by the report have largely been rejected by the Conservative Party’s ‘big-government appeasers’.

David Cameron’s refusal to take account of the substantial dynamic benefits from tax cuts - rising revenues as a result of higher growth, increased labour supply, reduced emigration and less tax evasion - is described as absurd by Professor Patrick Minford. Minfo