date: 5 January 2009

embargo: For immediate release

Tory tax proposal will not create a single new job

Responding to the Conservatives' proposal today (Monday) to abolish income tax on savings paid by basic-rate tax payers, which would be funded by restrictions on public spending, TUC General Secretary Brendan Barber said:

'The taxpayer will have to shell out £5.4 billion to fund this proposal, which would mostly benefit big banks, the super-rich and tax avoiders.

'It would not create a single new job but would instead add to the dole queues as a result of proposed cuts in public spending.

'We can only spend and work our way out of a recession. Saving alone would simply sink us further into recession.'

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Press release (200 words) issued 5 Jan 2009