There was a choice moment on Newsnight last night, with Ming being grilled by reporters, when he was questioned about his claim that under the Lib Dems there would be no overall increases in taxation. Looking at the conference papers, Stephanie Flanders spotted a proposal to increase road taxes to pay for investment in the railways. Ming had previously claimed that the Libs’ 4p cut in income tax would be paid for by, among other things, increases in road taxes.
“Ah,” says Ming, “that would be paid for by putting a toll charge on lorries using the motorway”.
SF: “So that’s not a tax increase in your view? Raising the overall amount of tax?”
MC: “No, you raise the money and then spend it on a green purpose”
SF: “But taxes have gone up because you’ve put that spending into the railways.”
Rapier like, Ming responded, “but if you create a high speed railway you will generate economic growth”.
SF: “That wouldn’t be counted by the Treasury as a reliable way for paying for your tax cuts”.
MC: “Ah, the Treasury’s not always right when it comes to the analysis of these things.”
That’s right Ming. The Treasury doesn’t do numbers and stuff.
I’ve slightly paraphrased the exchange, but you can watch it again here (about 12 minutes in).
