David Cameron has announced his plans to offer £4 billion in tax cuts for savers and pensioners. Savers were ‘the innocent victims’ of the downturn, he declared, announcing plans to stimulate a ‘save, save, save’ outlook to replace that of ‘spend, spend, spend’. He would scrap the basic 20 per cent rate paid by taxpayers on savings interest while raising the level of non-taxable income for pensioners by £2,000 a year. Labour called the plans ‘economic madness’ and the Lib Dems said it was a ‘fake giveaway’.
