Fox calls for cuts to taxes and benefits

TORY heavyweight Liam Fox has put more pressure on the government by calling for more cuts to benefits and taxes to fix the economy.

The North Somerset MP, who has been outspoken from the backbenches since resigning as defence secretary, said a three-year 'holiday' from capital gains tax was needed, as well as measures to make it easier to hire and fire workers.

In an interview with a national newspaper, when Dr Fox was asked whether David Cameron was the right man to lead the Tories into the election, he replied: "Yes, I think the PM is capable of delivering that."

But he said that Chancellor George Osborne's deficit reduction policy was not enough to revive the economy, warning: "If we don't take some risks, we'll not get growth and if we don't get growth we'll not get re-election." He said it was "irrational and unreasonable" for people on benefits to expect their payments not to be affected.

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But Dr Fox's calls were brushed aside by Lib Dem Stephen Williams, the MP for Bristol West.

He told the Post: "You don't get economic growth going by slashing people's benefits and restricting their ability to spend money."

Cutting capital gains tax would only help if there was "a great sale of estates by wealthy people", he said.

He added: "This is more to do with the ideology of a right-wing Conservative politician than a contribution to the debate on what to do with the economy."