British voters expecting tax rise - survey

More British voters believe taxes will increase under Tony Blair's Labour Party than under the other parties, building society…

More British voters believe taxes will increase under Tony Blair's Labour Party than under the other parties, building society Nationwide said today.

Just over half (51 per cent) of those asked in the monthly Nationwide Consumer Confidence Report said they expected to pay more tax under a new Labour administration, compared to 42 per cent after a Conservative victory and 44 per cent if the Liberal Democrats came to power.

Only 3 per cent of those asked thought taxes would fall under a re-elected Labour government, compared to 19 per cent under the Conservatives and 10 per cent under the Liberal Democrats.

Many economists say Chancellor Gordon Brown's economic plans rest on over-optimistic revenue projections and that he will need to raise taxes or borrow more.

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But the survey, which questioned 1,000 people between March 21st and April 18th, also found voters putting more trust in Labour's handling of the economy.

Sixty per cent said a Labour victory would either improve or have no impact on the economy, compared to 49 per cent for the Conservatives and 50 per cent for the Lib Dems.