Articles and Speeches

The Pre-Budget Statement
02-Dec-04, Comment.

Today the Chancellor has boasted such a great job with the economy, there are to be sparkling gifts showered upon us.

The sparkling Gifts?
Here are some of the gifts promised:
- £1bn for local Government to keep down Council Tax
- £250 for our children at age 7
- 15hrs 'free' childcare each week
- No increase in fuel duty this year

It is tempting to say 'gosh, isn't he a nice chap for making all these promises'. 

Well of course we should be thankful if these were gifts from a trustworthy friend.  But we have learned that nothing is what it seems with this current Labour Government.

Credit where credit is due.  The Chancellor has continued with some of the solid economic policies he inherited.  He has extended business share incentive schemes to encourage enterprise and he wisely released the Bank of England to manage interest rates and bring inflation to a 30 year low.

However do not be fooled.

Cunning Behaviour
The Chancellor inherited one of the strongest economies in the world that was poised to excel but he has systematically undermined it.

He has cunningly raised taxes 66 times and forced every household to pay an additional £5,000 each year.  Rather than increase income tax he has deviously taken £5bn from our pension funds, increased death tax (my preferred term for Inheritance Tax) and raised national insurance contributions.

The gifts he offers are worth a fraction of what he has taken from us.  The balance has been wasted in bureaucracy, inefficiency and failed initiatives.

It's like someone taking a tenna' from your back pocket, offering you a drink for a fiva' and then expecting you to be thankful.  Do not be taken in!

Take a look through the gifts promised and ask yourself are these 'gifts' or cunning 'bribes' for votes?

Massive Debts
Virtually all respected economic groups and commentators including the Institute for Fiscal Affairs, the OECD and the IMF say that he has borrowed so much that taxes will have to rise again.

So perhaps a better analogy is in order.  He has run up huge debts on our credit cards to offer us gifts. He grins with relief as many people are taken in and feel thankful, because he knows we'll be paying with interest through yet more tax rises in future.

The Facts
You may well be thinking that, as a Conservative, I just want to undermine the good work of the Chancellor.  So here are the facts and you can decide:

- Our productivity has slipped from 4th to 11th in the World Economic Forum's table of competitiveness since 1997
- There are 1 million violent crimes committed each year
- There are 1 million people waiting treatment on the NHS
- Most pension funds have been ruined

The Good News?
The good news is that when asked if this pre-budget would make people more likely to vote Labour most people said no.  When subsequently asked if they believe Labour will raise taxes again most people said yes.  So it seems that people are attuned to the Chancellors spin and trickery.

There is a Better Way
There's more to do for the Conservative Party to re-connect with disaffected Labour voters and LibDems who are beginning to wake up to their own parties sad lack of direction. 

However, if this reconnection does take place and a Conservative Government is in place then we can look forward to:

Value for Money Lower taxation
A Conservative Government will reduce taxation because people spend their own money more wisely and efficiently than Governments can.

Lower taxation can be achieved by cutting Government waste through freezing civil service recruitment,  controlling immigration and scraping the strategic health authorities that add very little value.  These measures alone will save about £5bn each year.

Less Spin, more Action
Michael Howard will ensure that independent bodies produce Government statistics so that politicians cannot meddle with them.

Under Michael Howard the Conservatives are committed to Action.  Rather than talk and make promises, the Conservatives have set out a clear timetable to 'do' things.  Oliver Letwin has said that he will resign if he does not deliver the tax cuts he promises.

Following this pre-budget statement there is now a clear choice.  A third term Labour Government with higher taxes, more waste and more spin or a Conservative Government that will deliver lower taxes, value for money and accountability.

I look forward to the next Conservative Government who will encourage and reward freedom and responsibility for hard working families.

The choice, however, is yours.