George Osborne writes: "A serious plan for a grown-up country"
At every conference since the election, the question for us and for me has been: ‘is your economic plan working?’
They aren’t asking that question now. The deficit is down by a third, exports to China have doubled, and businesses have created 1.4 million new jobs. Our plan is working. Thanks to the resolve and sacrifice of the people of this country, Britain is now turning a corner.
So now families, working hard and anxious about the future, are asking these questions: can we make the recovery last, and will they feel it in their pockets?
It is to them that I offer our economic plan for hardworking people.
- We will deliver sound public finances. We say: never again. Instead of borrowing and spending in the good times, we will fix the roof when the sun is shining. That is why we have said that when we have dealt with Labour’s deficit, we will run a surplus in good times as insurance against the bad. And so that we invest for the future, we will grow capital spending at least in line with our national income. It is only if we properly fix our public finances that we will be able to keep lowering taxes for hardworking people in a way that lasts.
- We are backing aspiration. We are the party of home ownership, and our Help to Buy scheme will help people make their dream of owning their own home a reality. We are backing small businesses, we have cut tax for millions of people, frozen council tax, and cut fuel duty. And as long as we can find the savings to pay for it, I want to freeze fuel duty for the rest of this Parliament.
- Unlike previous governments, we are leaving no-one behind. We’ve capped benefits and are making sure that work always pays. And now, for the first time, long-term unemployed people will be asked to do something in exchange for their benefits to help them into work. There will be no more something for nothing.
- And we are investing in the future, with support for infrastructure like HS2, science and shale gas. The world is changing, and it is a huge challenge for our country. But if we get it right, it is the key to our prosperity. Not for us the comfort of the past. Ours is the Britain of the future.
So let everyone know: this is a serious plan for a grown-up country. It is the only route to better living standards. We are laying sound economic foundations – without which better living standards cannot be built.
We are turning Britain around. We rescued the economy together. We’re going to recover together. And together we’re going to share in the rewards.
George Osborne
Comments
Here we go then. Will start with the second of his 4 bullet points. Will go for point 3 and 4 later.
So point 2 for now.
We are the party of home ownership, and our Help to Buy scheme will help people make their dream of owning their own home a reality.
If you consider buying a very overpriced house a dream and being lumbered with ever increasing debt when interest rates rise then great, the help to buy scheme will encourage people to push them selves and buy now, then regret when the rates do raise, also the help to buy scheme is already pushing up even higher house prices in an already overpriced market. Re-inflating the housing bubble so things look a little more rosie in time for the next election is not exactly a cunning plan George. Especially as you know the interest rates WILL rise, causing many defaults.
we have cut tax for millions of people, frozen council tax, and cut fuel duty.
ok you raised the tax free allowance on salaries, ok, whilst increasing VAT on everything they use the sarary to buy, great, give with the left hand take with the right.
Council tax has been frozen which is why many councils sidestep this measure and raise car park charges, parking tickets etc, basically they decrease the likely hood of people vising towns, thus hurt the businesses of that town.
Cut fuel duty - you cut fuel duty by 1p per litre once, though by raising the VAT by 2.5% you actually increased the amount of tax on every litre.
Before there was 59p fuel duty per litre and 10.3p vat on it. making tax and tax on the tax 69p per litre.
Now there is 58p fuel duty and 11.8p VAT making tax and tax on the tax 70p per litre.
Where is the tax cut here George?
And as long as we can find the savings to pay for it, I want to freeze fuel duty for the rest of this Parliament.
Freezing fuel duty is not cutting it. If you make a significant cut fuel duty, then the tax take will actually raise, it will reduce the price of goods (almost all of which are transported), increse employment, thus reduce the benefits bill, and increse the tax from incomes.
Please don't stand with a straight face and say you are the friend of the hard pushed middle class taxpayer.
Any way bullet point 3.
I am not so sure on the first sentence here, True, you have capped benefits, but i would argue you capped them way too high, see a person working full time on min wage, less tax (remembering they now have to pay council tax too) is not really better off than the person who is claiming all available benefits.
though having said that, and its still early days as I have not checked the ins and outs of it, I must say your "help to work" scheme sounds promising.
with support for infrastructure like HS2
I, like many others, am not convinced HS2 is a wise use of money, it will create a journey to london with a 15 minute time reduction, well i really dont think thats a good use of money. If its needed then let the rail companys improve their own services, fall into profit and re-invest in upgraded lines. There is no need for the taxpayer to pay for the few who will benefit by getting to london 15 mins earlier.
"Sound economic foundations"
based on fiat currency, fractional reserve banking and crony capitalism. There is nothing "sound" about any part of this economic illusion.
The world is changing, and it is a huge challenge for our country
You got the first part right, the world is changing, people are waking up to the above illusions, though its not so much a challenge for our country as a challenge for the political class to remain as the dictators to our country. Its hard to "rule" when you cant cover your tracks isn't it.
The last part is getting a little close to a person who once "saved the world", the less said about that the better really.
Any way, thanks hearing my 2p worth on your thoughts, George.