Okay, I have a quick question as I have been on holiday and not privy to the details.
As I understand it, Cameron and the ConDems plan to withdraw the Child Tax Credit (because that is what it is, not a benefit) for couples where one partner earns enough to be taxed at the 40% rate. This currently stands at around £45,000.
So what if that person is the only breadwinner? And do the couple, both of whom earn £30,000 each (and therefore one-third more than the 'high-earner'), get to keep the credit? It doesn't seem fair to me. I'm just asking to make sure I am completely up to speed.
P
Showing posts with label Cameron. Show all posts
Showing posts with label Cameron. Show all posts
Friday, 8 October 2010
Wednesday, 4 August 2010
Ideology vs economy
Yesterday, in Birmingham, David Cameron announced that public sector funding levels would not be restored once the budget deficit has been addressed. This will, hopefully, spell the end of any pretence that these cuts are anything but ideological in nature.
Most people out there agree that reducing the deficit is a necessity at this time, where the political parties differed was on how deep and fast to cut, with Labour choosing to wait before cutting, while the Tories were keen to wield the axe as soon as they had taken their shoes off in Number 10. The Lib Dems said they would wait but once in government Clegg said he had changed his mind. Who knew?! (This is all, by the way, ignoring those small numbers of people who do not see the deficit as a massive problem and something that would have been dealt with when the economy picked up.)
By stating that public sector funding will be expected to continue at the levels forced upon departments, councils and other organisations by the economic downturn and the coalition government’s unwillingness to continue funding the deficit, Cameron has stated that regardless of how the economy (and therefore Treasury take from tax revenue) improves nothing will encourage him to spend more.
Furthermore, a big issue is made of how much of the deficit is made up of interest payments – some £43bn this year alone out of a budget deficit of approximately £150bn. But hang on, if you successfully reduce the deficit, you are no longer paying that interest and therefore is it not free money which could be reinvested by the government? Oh wait, I forgot about Cameron’s comments yesterday!
All of this begs the question, if the Treasury are taking in more tax through a recovered economy, and have an extra £43bn freed up by not having to make those interest payments, what does the coalition government plan to do with the extra cash? My guess would be bring taxes down, something that would disproportionately benefit the wealthy, purely by how much they pay in taxation, while the poor will suffer from the decreased investment in public services they rely on.
We are now starting to see Cameron’s true colours seeping out.
P
Most people out there agree that reducing the deficit is a necessity at this time, where the political parties differed was on how deep and fast to cut, with Labour choosing to wait before cutting, while the Tories were keen to wield the axe as soon as they had taken their shoes off in Number 10. The Lib Dems said they would wait but once in government Clegg said he had changed his mind. Who knew?! (This is all, by the way, ignoring those small numbers of people who do not see the deficit as a massive problem and something that would have been dealt with when the economy picked up.)
By stating that public sector funding will be expected to continue at the levels forced upon departments, councils and other organisations by the economic downturn and the coalition government’s unwillingness to continue funding the deficit, Cameron has stated that regardless of how the economy (and therefore Treasury take from tax revenue) improves nothing will encourage him to spend more.
Furthermore, a big issue is made of how much of the deficit is made up of interest payments – some £43bn this year alone out of a budget deficit of approximately £150bn. But hang on, if you successfully reduce the deficit, you are no longer paying that interest and therefore is it not free money which could be reinvested by the government? Oh wait, I forgot about Cameron’s comments yesterday!
All of this begs the question, if the Treasury are taking in more tax through a recovered economy, and have an extra £43bn freed up by not having to make those interest payments, what does the coalition government plan to do with the extra cash? My guess would be bring taxes down, something that would disproportionately benefit the wealthy, purely by how much they pay in taxation, while the poor will suffer from the decreased investment in public services they rely on.
We are now starting to see Cameron’s true colours seeping out.
P
Monday, 2 August 2010
End of term report - Conservatives
As previously stated, David Cameron has done a good job of holding things together in government since the election. It is to his great credit that the Conservatives, previously so bolshie in opposition, have been able to keep any disquiet largely under wraps, despite a disappointing election result and having to make room at the Cabinet Table for several players who before May 5th were ‘enemies!’
The government has hit the ground running, forced in part through the Emergency Budget and (the government claims) the necessity to find massive savings right away. Consultations have been thrown out left, right and centre and all have contributed to the feeling, no doubt, that we finally have a government who are doing things! In any case, recent polling data would suggest that the public are responding, offering the tantalising prospect that, should Cameron wish, he could easily throw off the need for his coalition partners if the polls are replicated across the country.
There have been, however, a number of gaffes and headaches that have meant it has not all been plain sailing for Cameron. Michael Gove is developing quite a nice reputation for being an able and quick-witted lieutenant in opposition, but something of a liability in government. The haste with which the fast-track academy bill went through the Commons has been shown up to have been unnecessary and the fiasco surrounding the Building Schools for the Future announcement is something Gove and Cameron would sooner forget.
Liam Fox and his handling of the Defence portfolio is also proving to be something of a landmine that risks blowing up in Cameron’s face. Having criticised the previous government mercilessly for undermining the military covenant, it now seems Cameron and George Osborne are happy for them to force the MoD to find the cost of Trident replacement out of its existing budget. What will Dr Fox have to cut to find the cash for that boondoggle?! And finally, there is Cameron’s junior partner in government, Nick Clegg, who cannot even answer a few simple questions at the Dispatch Box without forcing Number 10 to issues unbelievable statements claiming he was not speaking for the government. It begs the question, what was he doing at the Dispatch Box if he does not?!
Still, none of this is making much impact with the electorate who, as stated above, have been getting happier with the Tories since the election. Still, Labour have been growing in popularity too, suggesting that much of the growth in support for both parties has come at the expense of the Lib Dems and other parties. Labour have done it all without a permanent leader, however as well as the distraction of a leadership contest. Food for thought for Cameron indeed!
P
The government has hit the ground running, forced in part through the Emergency Budget and (the government claims) the necessity to find massive savings right away. Consultations have been thrown out left, right and centre and all have contributed to the feeling, no doubt, that we finally have a government who are doing things! In any case, recent polling data would suggest that the public are responding, offering the tantalising prospect that, should Cameron wish, he could easily throw off the need for his coalition partners if the polls are replicated across the country.
There have been, however, a number of gaffes and headaches that have meant it has not all been plain sailing for Cameron. Michael Gove is developing quite a nice reputation for being an able and quick-witted lieutenant in opposition, but something of a liability in government. The haste with which the fast-track academy bill went through the Commons has been shown up to have been unnecessary and the fiasco surrounding the Building Schools for the Future announcement is something Gove and Cameron would sooner forget.
Liam Fox and his handling of the Defence portfolio is also proving to be something of a landmine that risks blowing up in Cameron’s face. Having criticised the previous government mercilessly for undermining the military covenant, it now seems Cameron and George Osborne are happy for them to force the MoD to find the cost of Trident replacement out of its existing budget. What will Dr Fox have to cut to find the cash for that boondoggle?! And finally, there is Cameron’s junior partner in government, Nick Clegg, who cannot even answer a few simple questions at the Dispatch Box without forcing Number 10 to issues unbelievable statements claiming he was not speaking for the government. It begs the question, what was he doing at the Dispatch Box if he does not?!
Still, none of this is making much impact with the electorate who, as stated above, have been getting happier with the Tories since the election. Still, Labour have been growing in popularity too, suggesting that much of the growth in support for both parties has come at the expense of the Lib Dems and other parties. Labour have done it all without a permanent leader, however as well as the distraction of a leadership contest. Food for thought for Cameron indeed!
P
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