I am very happy to hear today that David Cameron has unveiled a multi-billion pound tax cut today. These measures will have very little direct impact on someone like myself, I am on basic-rate but have little savings, and I am nowhere near being a pensioner.
But it is the message and direction that I am happy with. I have stated before on here that I am an undecided voter, todays announcement alone is not enough for me – but it is a very welcome first step.
Why do I think so?
Firstly, there is clear blue water now between Conservative and Labour Economic policies. It was only a few months ago that the Conservatives were still pledging to match Labour Spending plans in the event of the Conservatives taking office, they were slow to drop this pledge, and some of their other messages about the Government’s economic policies did not register. It also gives the Conservatives something to hit Labour back with when they chant their mantra about “Do-Nothing Tories”
Secondly, it is a good tax cut. Unlike a cut in VAT which we know is to be reversed, and which pales in comparison to some of the price slashing on the high-street. And unlike a suspension of stamp duty, these cuts are intended to benefit the people they target, and will likely be passed on to stimulate the wider economy. Families on basic rate incomes will not have much savings, but what is nested in the year will be for Holidays, Cars, Furniture, White Goods, School Uniforms, or for security, when things in life go wrong. Families need help, and will still be looking spend on, but only if they can afford to these types of things. It is likely to be struggling parents that have been loyal to Labour in the past decade that will decide the next election.
It should not be forgotten also that there is a large ex-pat community some of whom are living on savings interest that will also find this announcement appealing, many of whom are ex-pats because of a wider disapproval of the current government, but will be voting when the election comes.
I also welcome the increased threshold for pensioners. When a person reaches the end of their career they should not have to be worried about their incomes, this should be the time in which they enjoy life. MPs Pensions have sky-rocketed in the last decade, disproportionate to those people that they work for. It is right that Pensioners benefit early on for initial tax benefits.
The thing I like the most though is this line.
“We need to make a really big change: from an economy built on debt to an economy built on saving. From a country and government that has lived beyond its means to one that lives within its means.
“But Labour’s recession policy actually increases debt and undermines savings.”
This is the sensible Conservative statement Tory supporters have been waiting all of Mr Cameron’s reign for. I believe it will be well received across the MSM and the blogosphere. It is a hard statement for Labour to argue against, and as such Conservatives will be making sure this statement is repeated again and again.