Sunday, November 09, 2008

Tax cuts now!

There has been a debate in the Conservative party ranks for a long time, about tax cuts, or rather their timing.

I think we all agree that there should be tax cuts, and I think we all agree that the burden of taxation is too high. The problem was, and to some extent still is how do you pay for them?

If you intend on cutting public expenditure by £1 billion by say, losing people with ridiculous job descriptions, Labour will try and paint that as axing hundreds of nurses, doctors or teachers. That is a narrative that needs to be broken.

We, as a party have promised to promised to "share the proceeds of growth". That was fine. Times have however moved on. The car crash that is Gordon Brown has happened, the economy is hitting a brick wall at great speed and we need to look afreash at what we do and what we propose.

Firstly we need to cut taxes, and at the low end first, by reversing the increase in taxes on small companies and by reducing taxes on lower incomes by upping personal allowances or other similar moves.

The second thing the Conservative party needs to do is nail the idea that spending money equals results. It doesn't. This government is looking to raise spending on education, per child, to that spent in private schools. As a policy objective that is nuts. It also wanted to, and indeed has achieved, raising spending on health to the average across Europe. That is the policy objective, rather than looking for results.

This is where we need to attack Labour. If you can buy a car for £10,000 spending £20,000 on the same car does not make it a better car.

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