27 March 2008
The Conservative party has announced it intends to build up reserves of efficiency savings if it wins power.
Speaking to the Sunday Telegraph this month, Philip Hammond, shadow chief secretary to the treasury, said if savings were made during the first term of a Conservative government, tax cuts would be possible later.
He told the newspaper: "If we get into office and deliver the efficiencies and put the money in the bank, we put it by. Then we go back to the electorate and we say, not 'We would like you to believe that we will find these savings, that we will eliminate this waste', but, 'We have actually done it, we've made the savings. We've got this money in the bank and now we are going to tell you how we will use that to cut your taxes in a way that is prudent and sustainable."
He added efficiency savings would provide "headroom" to be able to offer reductions in tax.
"When the money's piled up in the pot, then you give it away in tax cuts," he said.