If everything goes according to the polls, the next UK Government will be a Conservative one, and the Tories are planning to introduce tax cuts that this economy desperately needs:

A future Tory government would aim to reduce National Insurance, income tax on savings and the tax burden on the over-65s, George Osborne, the shadow chancellor, will say.

Tax burden in UK is incredibly high compared to many other European countries, even despite of the recent VAT cut. For example, a person earning £30,000 a year has to pay 25% of tax, and if we take London average of £70,000 a year, one has to pay incredible 32%. If we add the 15% of VAT, the tax burden is 40% and 46% respectively.

If we also add income tax on savings which Tories want to cut, it’s getting more insane – if one earns up to £34,800 on savings, the tax rate is 20%, and if one makes over that amount, the rate is 40%. Even the taxation from dividends is lower than the tax on savings (10% and 32.5% respectively).

Leaving more money to people is an essential measure to ginger up the economy in these pretty tough times, although, having the hard-working people pay less tax would be an essential measure any time.

Now, the next step the Tories should take, is an overall tax reform and introducing a flat rate income tax. It’s utterly unfair and a punitive measure for people who earn more to pay more tax percentage-wise, because with a flat rate income tax they would pay more amount-wise anyway. Many countries in Europe have either introduced or are mulling flat rate income tax, and for the new countries in Eastern Europe, like Estonia, the choice of flat rate income tax was the key for the economic success they enjoyed after regaining independence.

I’m sure former Estonian PM and the “father” of Estonian flat rate income tax Mart Laar would happily guide David Cameron on the benefits of the flat rate income tax.

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• Labour planning 3% income tax hike
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• 70% of Britons: taxes are too high

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