Baroness Warsi and Chris Huhne are dishonestedly trying to dupe the Tory membership to lay the blame for the approaching spending review at Labour’s doors. The cuts to come are the Coalition’s cuts.
The June Budget, which was saluted at the time set out how the Coalition’s deficit reduction plan differed from Labour’s plan which was set out in the March Budget. Labour would not have cut the deficit as aggressively because of the risk to growth.
An approach that is being vindicated every week. That deficit hawks have not only hurt consumer confidence, they also risk double-dip.
More important then this piece of political flack is Bank of England’s Inflation Report set out today that:
“The measures announced in the June Budget are projected to lead to a somewhat faster and larger reduction in the deficit in coming years than projected in the March Budget …
“The direct impact of the fiscal consolidation is likely to have some dampening effects on demand. Some households’ disposable income is likely to be reduced or grow more slowly as a result of the consolidation, and some companies are likely to face lower public sector demand for their goods and services. But those effects may be offset, to some degree, if the consolidation improves investor confidence and reduces the risk of a significant rise in long-term interest rates.”
The Budget was a choice. The Coalition put concerns about long-term interest rates ahead of concerns about growth.
The fallacy of your argument is that lower growth will lead to more job losses, lower tax receipts, a widening deficit, and the prospect of rises in interest rates anyway.
The Coalition has – to date – only set out one third of the total cuts that it plans. The Coalition set out £6.2 billion of cuts in May followed by £11 billion of cuts to welfare spending in the June Budget – a mere fraction of the eye watering £52 £83 billion in cuts that are planned by the Coalition this Parliament.
Before you chuck stones, perhaps at least tell us as a government what you plan to do.
Tristan - if you had been a Labour minister and now in opposition would you pay back your ministerial severance pay? Considering the extremely difficult financial situation our country is in? I look forward to your answer....
BTW it is good the BoE has lowered it's forecast, they are being realistic and are now not coming under political pressure from a Mr Brown!
Says it all, really - thank you. I wouldn't bank on the b*stads getting back in, either - their lie machine is the one thing they've done that does work. By the time the Tories have started to bring things under control again, Polly and her champagne socialist friends will be pushing for ZaNuLabour to turn back the clocks yet again - and the sheeple will listen, as the always do.
Comments welcome, with 'clean' language, though not anonymous attacks. Note that comment moderation is enabled, and anonymous comments have again been disallowed as the facility has been abused.
Good video
ReplyDeleteBaroness Warsi and Chris Huhne are dishonestedly trying to dupe the Tory membership to lay the blame for the approaching spending review at Labour’s doors. The cuts to come are the Coalition’s cuts.
ReplyDeleteThe June Budget, which was saluted at the time set out how the Coalition’s deficit reduction plan differed from Labour’s plan which was set out in the March Budget. Labour would not have cut the deficit as aggressively because of the risk to growth.
An approach that is being vindicated every week. That deficit hawks have not only hurt consumer confidence, they also risk double-dip.
More important then this piece of political flack is Bank of England’s Inflation Report set out today that:
“The measures announced in the June Budget are projected to lead to a somewhat faster and larger reduction in the deficit in coming years than projected in the March Budget …
“The direct impact of the fiscal consolidation is likely to have some dampening effects on demand. Some households’ disposable income is likely to be reduced or grow more slowly as a result of the consolidation, and some companies are likely to face lower public sector demand for their goods and services. But those effects may be offset, to some degree, if the consolidation improves investor confidence and reduces the risk of a significant rise in long-term interest rates.”
The Budget was a choice. The Coalition put concerns about long-term interest rates ahead of concerns about growth.
The fallacy of your argument is that lower growth will lead to more job losses, lower tax receipts, a widening deficit, and the prospect of rises in interest rates anyway.
The Coalition has – to date – only set out one third of the total cuts that it plans. The Coalition set out £6.2 billion of cuts in May followed by £11 billion of cuts to welfare spending in the June Budget – a mere fraction of the eye watering £52 £83 billion in cuts that are planned by the Coalition this Parliament.
Before you chuck stones, perhaps at least tell us as a government what you plan to do.
Tristan - if you had been a Labour minister and now in opposition would you pay back your ministerial severance pay? Considering the extremely difficult financial situation our country is in? I look forward to your answer....
ReplyDeleteBTW it is good the BoE has lowered it's forecast, they are being realistic and are now not coming under political pressure from a Mr Brown!
Says it all, really - thank you. I wouldn't bank on the b*stads getting back in, either - their lie machine is the one thing they've done that does work. By the time the Tories have started to bring things under control again, Polly and her champagne socialist friends will be pushing for ZaNuLabour to turn back the clocks yet again - and the sheeple will listen, as the always do.
ReplyDeleteI am not a Labour minister and was not a Tory minister in 1992 either.
ReplyDelete