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BLAIR PLEDGES MORE TAX CUTS

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Tony Blair, alongside the German chancellor Gerhard Schroder, will today unveil a new blueprint for Europe's centre...
Tony Blair, alongside the German chancellor Gerhard Schroder, will today unveil a new blueprint for Europe's centre-left parties which will commit the government to further tax cuts.

The Independent (p1) reports that the call for reductions in business and income taxes will worry some Labour MPs, who will view the programme as a further move away from traditional Labour policies.

Other elements of the plan include: sweeping reforms of the welfare state; ending the 'job for life' culture; economic reform based on financial discipline; and abolition of regulations for businesses.

'Lower taxes rather than higher taxes are the way forward,' one close Blair ally said last night. He added that the prime minister was determined to extend Labour's cuts in corporation tax, the 10p starting rate of income tax introduced in April and the 1p cut in the 23p basic rate.
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