The Kindest Cut?


The economy needs a jump start, shadow chancellor Ed Balls will argue this morning.

The way to do it, according to Mr Balls, is to make a temporary cut in tax to put cash into people's pockets thereby boosting consumer confidence.

That is the headline in his first major policy speech in this job. His argument is that there is an alternative to the government's plan for a rapid reduction in the deficit so recently endorsed by the IMF.

Mr Balls will point out that the same coalition of a Conservative chancellor backed by the man who is now the IMF's acting director insisted in the 1990s that there was no alternative to staying in the ERM and were proved disastrously wrong.

As for his party's history, Mr Balls will insist that Labour are not to blame for the deficit.

Nick Robinson, Political editor Article written by Nick Robinson Nick Robinson Political editor

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  • rate this

    Comment number 203.



    refer you to 193.noonehasthisid, I was trying to be ironic.
    I know, ironic.

  • rate this

    Comment number 202.

    There must be some kind of award for this kind of pronouncement from Ed Balls.

    If there isn't may I suggest the 'Sagamix is most lowly rated again' award for least appropriate comment under the circumstances.

  • rate this

    Comment number 201.


    Water off a duck's back, JR, charges of complacency - especially coming from someone (you) who I've already spotted is complacent.

    And no, I agree, we mustn't base our prosperity on rampant domestic consumerism. To pick up Balls' imagery, all we're talking is a 'jump start' for the economy; get it off the drive and rolling down the road. Once we're motoring, we can decide where to go.

  • rate this

    Comment number 200.

    "There's no footy on, again, so they should have another good turnout."

    The phrase 'a good turnout' has been seriously devalued in modern times.

  • rate this

    Comment number 199.

    Well, inflation isn't the government's job, and you've duplicated it by saying real incomes are down. More dishonesty from you, as per usual.

    Consumer spending down, but confidence up. Go figure!

    Public borrowing up eh? You mean like in the deficit reduction plan that's freely available online?

    Your cherry-picking of measures is poor form.


Comments 5 of 203



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