UK's Brown defends Budget 2007, says it will ring in 'major tax reforms' UPDATE

UK's Brown defends Budget 2007, says it will ring in 'major tax reforms' UPDATE

	Published : Thu, 22 Mar 2007 11:37 By : Agencies Print this Story

(Updating with more Brown comment and background)

LONDON (AFX) - Chancellor Gordon Brown defended the tax cut measures in what was his last ever Budget yesterday, saying that the 'fiscally neutral' moves will ring in 'major tax reforms.'

He said the change, including the 2p cut in income tax and 2p reduction in corporation tax will tackle 'anomalies in the tax system.'

'I will take no risks with the economy,' he said in an interview on Sky News.

Brown also categorically rejected accusations that his tax cuts are a 'con trick' which would leave many workers worse off.

'That's absolute nonsense,' he said.

Brown said the tax changes will add 2.5 bln stg to the personal tax system, leaving the average British households would be 100 stg per year better off under the new plans, while families with children benefit from an additional 250 stg.

'I have tried my best by everyone ... and what I have tried to do is look at the needs of particular groups as we make this major change in the tax system,' he said.

'I have tried to look at what is happening to each of the groups -- families with children, pensioners and the low-paid workers -- and I have tried to do my best to ensure they are better off,' Brown said earlier on BBC television.

'I wanted to make this tax simplification because I think it's right we have a tax system that's competitive with the rest of the world, and one which helps pensioners, families with children and helps the low-paid,' he added.

He refused to be drawn into comment about whether he plans to call snap elections, saying only that 'nothing can be taken for granted,' he told Sky News.

Brown, is widely tipped step into Tony Blair's shoes as prime minister when the latter steps down later this year.

sivakumar.sithraputhran@thomson.com

jkm

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited