David Cameron has announced that the Conservative Party will not match Labour’s spending plans for 2010/11 for the simple and obvious reason that the country will be unable to afford increased spending.
This is to avoid huge increases in taxes later due to Gordon Brown’s crazy borrowing and will also allow the Conservatives the opportunity to either reduce government debt or cut taxes or both.
This announcement is hugely significant. It gives the Tories several options in tackling the downturn in the economy without having to borrow more. Prudent and responsible!