The unity of the coalition Government was under strain last night after David Cameron hinted at a compromise with his Tory critics over the adoption of Liberal Democrat tax-raising plans.
The unity of the coalition Government was under strain last night after David Cameron hinted at a compromise with his Tory critics over the adoption of Liberal Democrat tax-raising plans.
The Prime Minister promised that concerns over proposed rises in capital gains tax (CGT) would be taken into account by the Government.
But his attempt to calm nerves on his backbenches was immediately undermined by the Liberal Democrat Business Secretary, Vince Cable, who vigorously defended the moves to raise the current 18 per cent rate of CGT – typically applied to windfalls from the sale of shares and second homes – to 40 or 50 per cent. The former ministers John Redwood and David Davis argue that the planned increase would penalise savers and entrepreneurs.
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The Independent has learnt that other MPs have also privately raised their worries with the Chancellor, George Osborne, arguing that the rise should be deferred or replaced with a compromise “tapering” system targeted mainly at short-term windfalls.
To read the full story, visit independent.co.uk
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