Prime Minister Fredrik Reinfeldt and Finance Minister Anders Borg. Photo: Bertil Enevåg/TT.

"No tax cuts" say conservative Moderates

The conservative Moderate Party has announced that they will not go to the next election promising tax cuts. They claim tax cuts will not be possible in 2015 and 2016 due to the growing economy.

Instead, if the government remains in power after the election, they may have to raise some taxes, such as vehicle taxes and taxes on alcohol and cigarettes, Prime Minister Fredrik Reinfeldt and Finance Minister Anders Borg announced today.

Reinfeldt told Swedish Radio News that as the state of the economy improves, the government has to hold onto the purse strings even tighter to ensure there is a budget surplus for when times get rough again. That means tax cuts are unlikely were the centre-right coalition to form a government in 2014.

However, the Social Democrats' economic policy spokesperson Magdalena Andersson said she does not believe the Moderates' promises, saying they also warned ahead of the last election that tax cuts might not be possible, but then carried them out anyway.

"You can always rely on the Moderates, it's tax cuts, which are their top priority, Andersson told Swedish Radio.

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