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Fox proposes economic 'shock'

Fox proposes economic 'shock'
Scrapping capital gains tax for three years and paying for it by cutting benefits could deliver a positive "shock" to the economy, Liam Fox has said.

In an interview with the Times, the former Defence Secretary said slashing paternity leave, winter fuel allowance and free TV licences could pay for tax breaks to "show Britain was open for business".

Conservative MP Gerald Howarth said the Government should spend more money on defence and less on international aid, and was critical of the 7% cut in defence.

"I have yet to meet a Conservative who thinks we should be spending more money on overseas aid," he told the BBC.

Sir Gerald lost his job as defence minister in the recent reshuffle, while Dr Fox stepped down as Defence Secretary last October.

Green Box: Fox proposes economic 'shock'Click to open

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