Tories jump on inflation increase
By politics.co.uk staff
The Conservatives have again warned of the negative impact a hung parliament could have on the economy, after new figures showed the pace of inflation had quickened in March.
Consumer price index inflation rose from three per cent in February to 3.4% in March, while retail price index inflation was up from 3.7% to 4.4%.
“This is worrying news for families who are already feeling the pinch,” shadow chief secretary to the Treasury Philip Hammond said.
“Gordon Brown’s decision to freeze tax allowances while inflation is soaring means that people will pay more of their income in tax – the last thing they need when they are already struggling to balance their budgets.
“A hung parliament could lead to an even weaker pound and even higher inflation, with the risk of higher interest rates to tackle it. Only the Conservatives can restore confidence in our economy and guarantee the recovery.”
The Tories’ chief criticism following Alistair Darling’s pre-election Budget was its freeze in income tax, despite inflation.
They argue pensioners have been especially badly hit – saying there has been a real-terms cut of over £400 for those aged between 65 and 74, leading to higher income tax of £83.51.
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