Please note that the post below was published more than ten year ago on 21st November 2009 Nick Herbert MP, shadow cabinet member for the Environment, Food, and Rural Affairs, was in Cumbria this morning to see the areas affected by the flooding. He writes on Conservative Home about his visit. Here is an extract. I’ve been in Cumbria today to see the areas affected by the floods. I arrived early in Keswick where I met officials from the Environment Agency. Although the river levels had fallen considerably and homes were no longer flooded, the damage to homes had been done. And the water which had got into houses wasn’t just from the river – it was foul water which had risen from the drains. I talked to fire crews who were pumping flood water back into the river, and discovered that they were from Tyne & Wear and Lancashire. They had been called in at an hours’ notice and had been working on the scene ever since, staying at a local hotel. You cannot fail to be impressed by the...
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I could smoke 100 cigarettes a day, then I realise I don't earn enough money to do that. Now the government would seem to think I have 2 options,
Option 1 - ask my boss for more money in order to spend so much on cigarettes.
Option 2 - If boss says "no" Borrow money by using my visa card to pay for cigarettes.
Well what would appear to be totally unknown to government is that I actually have a 3rd option.
Option 3 - Stop smoking so many cigarettes, if I take this option then I would actually have enough left in my bank account at the end of each month to pay off a bit more from my credit card bill.
There are two sustainable ways to fund tax cuts. One is to cut spending: and when your government income is as far out of line with spending as that of Britain was in 2010, this has to be done.
All three candidates for Chancellor admitted when asked during a live TV debate as part of the 2010 election campaign, whether they would have imnpose cuts if elected as severe as any thing Mrs Thatcher ever did, that the answer was "Yes."
If an economy is growing fast, which sadly at the moment the British Economy is not, then the "stabilisers" will increase tax revenues even faster than the economy grows, and in this case you can cut taxes without having to cut spending. This does not often happen.
He is saying that tax cuts can not be made (if you like part of "Option 1" because "option 2" is not a good idea.
No where does he mention "option 3" which eliminates the bad "option 2" and also allows for reduction in "option 1" i.e. a pay freeze or cut.
By using option three, then even if I do have to take a pay cut, I can manage my budget in such a way that I still spend less than I earn.
Basically "Option 3" highlights what is the "Elephant in the room" when it comes to discussions in parliament about taxation and borrowing. Questions come up like "how will you pay for a cut in fuel duty?" and the only way they seem to know is to raise the tax take in another area. The obvious answer "by spending less" never seems to come into it.
You would not believe the level of opposition we got on Copeland council, while the accounts were being sorted out and when it turned out there was a couple of million more in reserves than had been expected or was needed, when the Conservatives proposed that therefore the council did not need to put the council tax up that year.
On second thoughts, Jim, you might believe it because you know something about Copeland Borough Council, but someone who did not have that misfortune would never believe it.