Ed Balls – tax cutter?

In an article for tomorrow’s Sunday Times, Ed Balls has reiterated his call for George Osborne to reverse his VAT hike:

“the Chancellor should announce a temporary reversal of his VAT rise. This is part of Labour’s five point plan for jobs, which also includes tax breaks for small businesses taking on extra workers and bringing forward essential infrastructure investment.”

However, is Balls suggesting that he might welcome tax cuts more broadly? He seems to suggest that when he says:

“if George Osborne can’t bring himself to reverse his VAT mistake, he has other options. For the same amount of money, he could cut the basic rate of income tax by 3p for a year. Or raise the income tax personal allowance to over £10,000. Or increase tax credits for almost 6 million working people by around £2,000. It would be better to cut VAT now – it’s fairer and quicker and would help pensioners and others who don’t pay income tax. But any substantial tax cuts to help households and stimulate the economy would be better than doing nothing.”

Ed Balls – tax cutter? That might make a few Tories choke on their cornflakes tomorrow morning, but it also puts the Chancellor in the unenviable situation of being outflanked on tax cuts. What happens next? It’s your move George…