Cable dismisses tax cut calls as 'voodoo economics'

Business Secretary Vince Cable today dismissed calls for a tax cut to kick-start the stalled economy as "voodoo economics".

Mr Cable said calls by some Tories, including London Mayor Boris Johnson, to scrap the 50p top rate of tax would undermine the coalition's commitment to tackling the budget deficit.



Ministers have been under pressure over their handling of the economy after official figures this week showed growth had slowed almost to a standstill.



Chancellor George Osborne has hinted he would be prepared to cut some taxes to ensure the UK remained a competitive location for business.



However Mr Cable made clear any reduction would have to be fully funded by tax increases or spending cuts elsewhere.



"There is this expression which goes back to debates over the last 20, 30 years about so-called voodoo economics - this idea that you can cut taxes and nobody has to pay for it," he told BBC Radio 4's The World at One.



"The truth is if you do have a significant tax cut it is just like an increase in expenditure, it widens the budget deficit.



"The overriding task that this Government embarked on when it got into office was to sort out our public finances. We are doing that. It is difficult but we are doing it in a disciplined way.



"Aggregate tax cuts which are not funded completely undermine our commitment to budget discipline."



Mr Cable also slapped down a reported proposal by David Cameron's strategy director, Steve Hilton, for the abolition of maternity leave in order to ease the burden on business.



"That most definitely is not Government policy. Steve is a fine blue skies thinker but this is not part of what we are going to do," he said.



"We are looking at labour legislation in general but it has got to be sensible and balanced and I think that particular proposal isn't."

PA

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksNow available in paperback
Arts and Entertainment
Tony Hughes (James Nesbitt) after his son Olly disappeared on a family holiday in France
tv
Arts and Entertainment
The Apprentice candidates Roisin Hogan, Solomon Akhtar, Mark Wright, Bianca Miller, Daniel Lassman
tvReview: But which contestants got the boot?
Arts and Entertainment
Jim Carrey and Jeff Daniels ride again in Dumb and Dumber To
filmReview: Dumb And Dumber To was a really stupid idea
Extras
indybest
Sport
Scunthorpe goalkeeper Sam Slocombe (left) is congratulated by winning penalty taker Miguel Llera (right)
football
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Customer Services Administrator - Swedish Speaking

Negotiable: Recruitment Genius: This is an exciting opportunity to join an awa...

Recruitment Genius: Facilities Manager

Negotiable: Recruitment Genius: A Facilities Manager is required to join the m...

Recruitment Genius: New Business Sales Consultant - Mobile - OTE £35,000

£14000 - £35000 per annum: Recruitment Genius: This independent telecoms compa...

Recruitment Genius: New Business Sales Consultant - Unified - OTE £35,000

£14000 - £35000 per annum: Recruitment Genius: This independent telecoms compa...

Day In a Page

Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas
La Famille Bélier is being touted as this year's Amelie - so why are many in the deaf community outraged by it?

Deaf community outraged by La Famille Bélier

The new film tells the story of a deaf-mute farming family and is being touted as this year's Amelie
10 best high-end laptops

10 best high-end laptops

From lightweight and zippy devices to gaming beasts, we test the latest in top-spec portable computers
Michael Carberry: ‘After such a tough time, I’m not sure I will stay in the game’

Michael Carberry: ‘After such a tough time, I’m not sure I will stay in the game’

The batsman has grown disillusioned after England’s Ashes debacle and allegations linking him to the Pietersen affair
Susie Wolff: A driving force in battle for equality behind the wheel

Susie Wolff: A driving force in battle for equality behind the wheel

The Williams driver has had plenty of doubters, but hopes she will be judged by her ability in the cockpit
Adam Gemili interview: 'No abs Adam' plans to muscle in on Usain Bolt's turf

'No abs Adam' plans to muscle in on Usain Bolt's turf

After a year touched by tragedy, Adam Gemili wants to become the sixth Briton to run a sub-10sec 100m
Calls for a military mental health 'quality mark'

Homeless Veterans campaign

Expert calls for military mental health 'quality mark'
Racton Man: Analysis shows famous skeleton was a 6ft Bronze Age superman

Meet Racton Man

Analysis shows famous skeleton was a 6ft Bronze Age superman
Garden Bridge: St Paul’s adds to £175m project’s troubled waters

Garden Bridge

St Paul’s adds to £175m project’s troubled waters
Stuff your own Christmas mouse ornament: An evening class in taxidermy with a festive feel

Stuff your own Christmas mouse ornament

An evening class in taxidermy with a festive feel
Joint Enterprise: The legal doctrine which critics say has caused hundreds of miscarriages of justice

Joint Enterprise

The legal doctrine which critics say has caused hundreds of miscarriages of justice
Freud and Eros: Love, Lust and Longing at the Freud Museum: Objects of Desire

Freud and Eros

Love, Lust and Longing at the Freud Museum