November 18, 2008
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!
November 17, 2008
‘Isn’t it the case that Labour’s borrowing bombshell will soon become a tax bombshell? And let’s be clear about what that means. Borrowing £30 billion now will mean an income tax bill for the average earner of nearly £1,500 later.Everyone knows the prime minister is planning a Christmas tax giveaway, but tax cuts should be for life, not just for Christmas. We need real tax cuts not tax cons.’
(David Cameron in the commons responding to Gordon Brown)
Whether Gordon Brown calls it a ‘fiscal stimulus’ or simply ‘additional borrowing’ the taxpayer will have to pay it back with interest in due course. But our PM doesn’t care as long as it gives him a chance of winning the next election.
November 11, 2008
David Cameron this morning set out the Conservative party’s proposals for dealing with rising unemployment by giving employers a £2500 tax cut in the national insurance they pay for each person they recruit who has been jobless for three months. The effect of this proposal would create 350 000 new jobs and be worth £2.6 billion to employers and is funded out of the money that would otherwise be spent on unemployment benefits.
This is a funded tax cut that helps businesses and equally important gets those people unemployed for a short period back into work. Cameron has understood that short term unemployment very quickly turns to medium then long term unemployment with the inevitable effect that skills acquired are lost and the attractiveness of that employee to potential employers diminishing with time.