Ahh well, back to painting Gordon as the Saviour of the World.
“BBC political editor Nick Robinson said the fact that a series of countries now look likely to implement packages of tax cuts and spending increases would allow Mr Brown to claim the UK is in the lead when it came to dealing with the economic crisis.”
- The U.S. fiscal stimulus plan worth $150 billion went into play in February with bi-partisan support.
- The Chinese stimulus package is a $586 billion public works acceleration plan announced last week.
- The German Cabinet approved a stimulus package weeks ago, as did the French.
- Australia’s second stimulus package was announced last month – though they have the advantage of a massive budget surplus after a decade of Conservative economic policies.
- Spain’s fiscal stimulus package was announced in April.
- Conservative run Canada also has for years run a budget surplus and remains determined to balance the budget and cut taxes.
- Japan has been doing fiscal stimulus for two decades.
Brown cuts taxes… Osborne doesn’t find room for serious tax cuts… Infighting breaks out inside Tory Party… Lots of interest rate cuts… Caroline Spelman forced to resign over nannygate… Barack meets Brown… Then narrow Labour election win early next year…
Feasible? Gordon is clearly going to throw some bribes the electorate’s way next year. In that context the Osborne-Letwin “no punk tax cuts” hair-shirt is political masochism.
If Labour does a Bush-style tax rebate, and Guido will not be in the least surprised if Gordon performs the mother of all U-turns, Osborne could talk about budget deficits, Gilt-yields and sound money until he is blue in the face. The electorate will see tax rebate cheques and the shadow chancellor saying they shouldn’t have ’em…
The Tories need to follow the LibDem lead (not a phrase often seen). Point to the £20 billion in savings identified. £20 billion is 3% of government expenditure, expenditure which has nearly doubled under New Labour. Dropping ID cards alone could save nearly half that amount. It costs some £6 billion to raise thresholds £1,000 for everbody, it will defuse the Tory Tax Bomb blowing up in their face.