Tax cuts are talk of the town
It's press conference morning here in Westminster and tax cuts are the talk of the town. David Cameron was first off the block with an 8.30am announcement of his plan to give employers a National Insurance holiday if they take people onto their payrolls. Gordon Brown is now arguing the case for a fiscal stimulus as I write. Nick Clegg claims they're both running to catch up with the Lib Dems.
The Tories, however, are carving out a distinctive line: alone among the major parties in Britain (perhaps in the democratic world) they are setting their face against a fiscal stimulus. They think we're borrowing enough already; so every tax cut they propose is balanced by savings or extra tax elsewhere, which means their plans do not add to extra demand.
Certainly distinctive, perhaps even bold (the Tories did promise us "sound money" at their conference). But is it right? 
Governments across the world are resorting to Kenysian pump-priming to mitigate the impact of the recession. So why are the Tories carving out different territory? That's what we'll be asking Shadow Chancellor, George Osborne this morning, along with a few other matters!
So join us at Noon for the Daily Politics on BBC2.
© MMIX~RS~q~RS~~RS~z~RS~49~RS~)
Comments
Sign in or register to comment.
Andrew,
Libdems told Labour what to do with Northern Rock -- they were laghed at
Libdems told Labour what to do with the banks -- they were ignored
Libdems said Cut Taxes -- they were ridiculed.
In every case Brown eventually followed the Lib dems and he is a Financial Wizard.
Brown is a liability and he is conning the whole country.
Complain about this comment
nice idea to get people back to work, problem is though if there is no work and people are being laid off who will be doing the hiring?
Government needs to lead the way for jobs by projects that will benefit the infrastructure and prepare all the country for when the recession starts to slow.
that by the way means beyond the M62.
spread the investment outside of the south east and share the profits in work.
Complain about this comment
After 10 years in power the Labour answer to Conservative policies is" it does not add up". That's a mute point given Brown's sums never added up to his claims.
Complain about this comment
Most people do not have the slightest interest in the views of G 'Oligarch' Osborne or the Bullingdon Kid leading the Tories. The governing party will make the right decisions to deal with the Global crises.
Complain about this comment
Suddenly we're offered three different types of tax cuts by the main parties! Which one should we go for?
The Tory offer looks dull, but it might work - up to a point. It doesn't give the impression of being significant enough, though.
The Lib-Dems proposal probably has the widest appeal - and they've led the way in ideas, so far. Theirs may be the best bet.
As for the Labour solution, it depends on whether you trust Brown's judgement (or is it Darling's?). A big problem here is that they're not giving us any clue about how much we'll have to pay back in the future. Obviously they don't know, yet, as McNulty said (more or less), but that doesn't help. It's really a step in the dark - guided by Brown!
Complain about this comment
Suddenly we're offered three different types of tax cuts by the main parties! Which one should we go for?
The Tory offer looks dull, but it might work - up to a point. It doesn't give the impression of being significant enough, though.
The Lib-Dems proposal probably has the widest appeal - and they've led the way in ideas, so far. Theirs may be the best bet.
As for the Labour solution, it depends on whether you trust Brown's judgement (or is it Darling's?). A big problem here is that they're not giving us any clue about how much we'll have to pay back in the future. Obviously they don't know, yet, as McNulty said (more or less), but that doesn't help. It's really a step in the dark - guided by Brown!
Remember that Brown quickly explained to the country, at the outset, that this was a problem originating in the USA, while most economists blamed the USA and the UK equally. Maybe Obama will be happy to carry the can - just to keep up the Special Relationship!
Complain about this comment
Brown suffers from hubris on a grand scale.I cannot believe the public sometimes.Churchill had it about right when he said"If you want to know what is wrong with a democracy speak to a member of the public for five minutes.I think Brown is proving him right
Complain about this comment
I had a small manufacturing business for 12 years until I retired three years ago.
The prospect of receiving as I understand it just £2800 NI rebate to really small (less than 5 employees?) businesses when an extra employee is taken on will NOT IN ITSELF turn a cautious decision on an extra employee into a positive one.
There has to be a good BUSINESS case for an additional employee to be taken on so the rebate will be simply be giving away money for a decision that was going to be taken in any case regardless of the NI cost
Complain about this comment
View these comments in RSS