Chancellor hints at tax cuts

Chancellor Alistair Darling has hinted that the government may reduce taxes to help lower income families.

According to the Evening Standard, the Chancellor made the suggestion in an interview with GMTV this morning (30 October), in the wake of Liberal Democrat leader Nick Clegg challenging the Prime Minister over his tax policy in parliament.

Speaking to the television programme’s presenters, Mr Darling illustrated his commitment to tax reform by pointing to the recent reduction of the basic rate obligation.

He told GMTV: "At a time like this, when the economy is slowing down, it's right that the government supports people, supports businesses."

"At this time, what you really do not want to do is to be taking the money out of people's pockets, especially… when people are struggling to make ends meet."

Earlier this week, Shadow Chancellor George Osborne told the Labour Party to "pull their finger out" and procure more contracts to small businesses.