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Tories' George Osborne Unveils New Economic Model For Uk

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http://www.telegraph.co.uk/finance/finance...del-for-UK.html

A Conservative election victory would trigger an emergency budget to ensure low interest rates, cut public spending and effect a "programme of reform no less radical than the one that restored the UK's economic competitiveness in the 1980s and 1990", according to George Osborne, the shadow chancellor.

Mr Osborne, who unveiled the "Conservative Strategy for Recovery" at a conference organised by The Spectator magazine, claimed a triumph over Gordon Brown on the argument of continued public spending. Mr Osborne said that Mr Brown's announcement of public spending cuts at the TUC Conference amounted to "complete capitulation".

He said that within two months of an election the Tories would "effect nothing less than a new British economic model" that "will require fundamental change across the whole spectrum of economic policy, including taxation, infrastructure, skills, housing and financial regulation".

The Tory policies are:

* Monetary activism. The shadow chancellor said as strategies for recovery, both public spending and the VAT cuts were wrong. Instead he argued that keeping interest rates low – for public finances, businesses and individuals – would be the "main focus" of economic policy. He added that the so-called "monetary policy transmission mechanism" – making sure interest rate cuts are passed on as lower borrowing costs for households and businesses – was key.

* High-capitalised banks to ensure that costs were not simply absorbed by "zombie banks" but passed onto businesses and individuals. He said: "Monitoring bank margins and the extent to which lower interest rates are passed through to consumers should be a key focus."

* Bank competition – including promoting new entrants, expansion of existing smaller players or divestments of "dominant groups".

* Bankers' pay that is pro-competition but not paid for by the taxpayer. Mr Osborne stopped short of specific pay policies but gave warning: "The profits that the banks are making are not simply the results of success, they are subsidised profits ... We are underwriting these profits for a purpose – to help recapitalise the banks and support the broader economy, not so that they can be paid out as huge bonuses or distributed as excess returns to shareholders."

* Fiscal responsibility. Mr Osborne promised a "credible commitment to cut spending and get to grips with our record budget deficit". He warned that "the consequences of a loss of international confidence for a debt-laden economy like the UK would be truly devastating". He said that while the Bank of England is buying more debt than the Government is issuing, the problem will be disguised, but when this stops – we will have to rely on international investors to fund our borrowing. At that point we will start to discover the true market appetite for UK government debt.

* Supply-side reform. Mr Osborne said the Tories would introduce a range of policies designed to boost the economy without public spending. These would include lower corporation tax rates and a simpler tax system; radical school reform, welfare reform and better skills; more private investment in infrastructure and other long term productive assets such as high speed rail and smart energy networks; and the transition to a low carbon economy.

* Regulatory reform – designed to "create a financial system that serves the long-term interests of the economy, not its own short-term interests".

So the Tories are aiming to keep interest rates low, this will only work if they tackle the debt mountain and people are made to pay back what they owe. If this is to get spending going again it will fail.

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Guest KingCharles1st

I seriously wonder if they could pull it off if an early election was called. I just see a load of "no faces" with little to say, not being helped many by the BBC- labour's mouthpiece.

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There's nothing wrong with low rates per se, we are somewhat anti the idea because of its association with loose money and exploding assets bubbles, but right now high rates would pretty much shut the country down.

I share the concern whether they'll get in. This absurd "recovery", being hyped by one and all, could save Labour, as might the ease with which a "Leader" can venomously attack a policy (spending cuts) one month and then embrace it as if he's been saying it all along. Not one person I've seen on TV has pointed this out and asked the question whether this actually has anything to do with LEADING.

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http://www.telegraph.co.uk/finance/finance...del-for-UK.html

So the Tories are aiming to keep interest rates low, this will only work if they tackle the debt mountain and people are made to pay back what they owe. If this is to get spending going again it will fail.

If they don't keep interest rates low, how much extra tax are you willing to pay to cover the increased interest on the national debt?

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This bunch of Tories are more vacuous, more pompous, and more out of touch with the British electorate than any since the 19th Century. When it comes to the electoral crunch, people vote either for a strongman or someone they can empathise with. These Tories are neither.

It's ironic the number of Tory supporters on this forum. If the good times rolled on, if we were all quaffing champagne and snorting about our money whilst snorting cocaine off the breasts of a Polish plumber's wife, then the Tories would no doubt romp home. Many more of us would have something in common with Dave and George.

The harder things get, the more likely we are to see Labour back. And thank God for that.

Edited by nowthenagain

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This bunch of Tories are more vacuous, more pompous, and more out of touch with the British electorate than any since the 19th Century. When it comes to the electoral crunch, people vote either for a strongman or someone they can empathise with. These Tories are neither.

It's ironic the number of Tory supporters on this forum. If the good times had rolled on, if we had all be quaffing champagne and snorting about our money whilst snorting cocaine off the breasts of a Polish plumber's wife, then the Tories would no doubt have romped home. Many more of us would have somethings in common with Dave and George.

The harder things get, the more likely we are to see Labour back. And thank God for that.

You keep dreaming. If the Tories ram home why we are in this mess - Labour government - I think you'll not see another Labour government in your life time. Not everyone is as simple minded as you. Open your eyes, Labour are pure evil.

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Minos, you're wrong. Labour have a fantastic chance. There has been no fire on Dave and chums for a long time. It's all being held back. Wait and see. The podgy faced coke-whore fiend is going to get flattened.

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This bunch of Tories are more vacuous, more pompous, and more out of touch with the British electorate than any since the 19th Century. When it comes to the electoral crunch, people vote either for a strongman or someone they can empathise with. These Tories are neither.

It's ironic the number of Tory supporters on this forum. If the good times rolled on, if we were all quaffing champagne and snorting about our money whilst snorting cocaine off the breasts of a Polish plumber's wife, then the Tories would no doubt romp home. Many more of us would have something in common with Dave and George.

The harder things get, the more likely we are to see Labour back. And thank God for that.

Why do you support labour?

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Minos, you're wrong. Labour have a fantastic chance. There has been no fire on Dave and chums for a long time. It's all being held back. Wait and see. The podgy faced coke-whore fiend is going to get flattened.

I get it, you're a p*ss taker. Well done, caught me out there.

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You keep dreaming. If the Tories ram home why we are in this mess - Labour government - I think you'll not see another Labour government in your life time. Not everyone is as simple minded as you. Open your eyes, Labour are pure evil.

well said Minos, unusually unsarcastic for you!

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Radical? They don't seem very radical to me. Once again, some more tinkering around the edges from the big parties.

What is this simpler tax system too?

Still no meaningful monetary reform and no mention of any sort of land value taxation. So, full steam ahead into the next boom/bust after this one then! :rolleyes:

EDIT: At least they are trying to encourage new banks, but I don't see how they are going to compete when their competition is so big and the system is rigged against them ("too big to fail").

Edited by Traktion

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Guest KingCharles1st

Has anyone stopped for one moment to think that maybe, just maybe, a hung parliament is what the powers that truly are actually want? That way, without much able to happen, things stay exactly as they are..

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You keep dreaming. If the Tories ram home why we are in this mess - Labour government - I think you'll not see another Labour government in your life time. Not everyone is as simple minded as you. Open your eyes, Labour are pure evil.

I agree about Labour being evil, but hasnt 'call me Dave' effectively been a partner in crime?

Just like Mrs T got a bit carried away with her policies in the late 80's with a big majority and ineffective opposition, hasnt Dave co-operated in allowing labour to do as they please in the hope that if he shuts the feck up and gives them enough rope, he might just get in?

Should there not have been a point where his ambition for the highest political office was secondary to his concerns about where Labour were taking us?

Its alright Dave saying Labour caused all the problems, but when during his leadership of the opposition has he shown a different direction the country would have taken under the Tories?

As it stands, we know the bloke has got 20:20 retro vision. But is he the ideas man to plan out our countries future and offer direction and leadership?

So far, he hasnt demonstrated any of this. Decisiveness and leadership is something the labour party will play on. As absurd as that may sound, Labour will use it, and a lot of people will buy it.

Edited by Nick Dastardly

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Has anyone stopped for one moment to think that maybe, just maybe, a hung parliament is what the powers that truly are actually want? That way, without much able to happen, things stay exactly as they are..

You mean have have blameless cuts?

A collective would be politically very expedient for all concerned. When the shtf they could all blame each other as they where all doing the right thing.

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This bunch of Tories are more vacuous, more pompous, and more out of touch with the British electorate than any since the 19th Century. When it comes to the electoral crunch, people vote either for a strongman or someone they can empathise with. These Tories are neither.

It's ironic the number of Tory supporters on this forum. If the good times rolled on, if we were all quaffing champagne and snorting about our money whilst snorting cocaine off the breasts of a Polish plumber's wife, then the Tories would no doubt romp home. Many more of us would have something in common with Dave and George.

The harder things get, the more likely we are to see Labour back. And thank God for that.

Which Labour?

This Labour?

This Torylite Labour?

Put the crack pipe down old son.

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Guest UK Debt Slave
This bunch of Tories are more vacuous, more pompous, and more out of touch with the British electorate than any since the 19th Century. When it comes to the electoral crunch, people vote either for a strongman or someone they can empathise with. These Tories are neither.

It's ironic the number of Tory supporters on this forum. If the good times rolled on, if we were all quaffing champagne and snorting about our money whilst snorting cocaine off the breasts of a Polish plumber's wife, then the Tories would no doubt romp home. Many more of us would have something in common with Dave and George.

The harder things get, the more likely we are to see Labour back. And thank God for that.

So you want to see the architects of this mess back in power?

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You've got to support the Tories for making banks pass on interest rate cuts to businesses and consumers.

The current regulators the FSA are all ex-bankers running the industry for the benefit of their friends.

The latest figures show that bank margins have never been higher than now; they are making billions and continuing to pay ridiculous bonuses, whilst at the same time having record complaints for shoddy service, all whilst we the taxpayers own them.

The tories will scrap the FSA and return the regulation of banks to the Bank of England. This fact alone is worthy of a blue vote.

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low interest rates combined with hidden inflation thru screwed inflation figures:

2 elements to uk national debt

(1) gilt holders - they will need compensating with higher coupon to avoid a gilts-strike, ok then, higher IRs in commercial lending then;

(2) PFI and public sector pension-expectees - most of them are too stupid to realise they will be robbed by inflation.

So essentially low IRs are Osborne's way of putting a gloss on defaulting partially on half the national debt. Public sector unions go 'where's our pension', tories go 'low IRs good, what you on about'. Public sector pensions, salaries, and PFI profits go bye-bye thru the magic trick of inflation and a screwed index, demonstratng comparable ingenuity to Derren Brown., which is only applicable where the tricked individual is a bit slow.

Additonal benefits (in a very cynical way) of low IRs - create a financial bubble (in something) to peak not before following election and get tories re-elected. Again, compare with Derren Brown.

Edited by Si1

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This bunch of Tories are more vacuous, more pompous, and more out of touch with the British electorate than any since the 19th Century. When it comes to the electoral crunch, people vote either for a strongman or someone they can empathise with. These Tories are neither.

It's ironic the number of Tory supporters on this forum. If the good times rolled on, if we were all quaffing champagne and snorting about our money whilst snorting cocaine off the breasts of a Polish plumber's wife, then the Tories would no doubt romp home. Many more of us would have something in common with Dave and George.

The harder things get, the more likely we are to see Labour back. And thank God for that.

You're like the die hard John Major supporter of the last Tory govt during it's dying days! Every dog has it's day and Labour's day is fast approaching. Accept it...you had your moment when the shoe was on the other foot! The polls indicate a Tory majority of 90...they are THE SAME POLLS that predicted a Labour landslide in 97.

As for your first paragraph, well this NuLab lot have to be biggest bunch of arseholes ever to be elected to Govt. They have done nothing but spend, spend and spend!!! Can you not see that? They have done NOTHING! And now they sh1t has hit the fan they are clueless on what to do and are so out of touch that they (the f*cking tw*ts) are saying the recovery is upon us???? All they've done is spend again...spend OUR MONEY...given OUR MONEY TO BANKERS. A LABOUR GOVT THAT HAS HANDED OUR MONEY OVER TO THE BANKERS? Are you proud of that?

The tories suffered recessions and stayed in govt. They took the tough decisions and were re-elected. These nulab clowns do nothing but talk, spend, talk, spend and more talk & spend!

Get them out!

Edited by Chest Rockwell

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Its alright Dave saying Labour caused all the problems, but when during his leadership of the opposition has he shown a different direction the country would have taken under the Tories?

That's not the point Nick, he wasn't in govt when it happened...unless the general masses read Hansard they'll never know what his comments were or what his party line was during the era of mass speculation on assets. The fact of the matter is that Clown made all those tough ass statements "no more boom and bust" etc...in fact Clown rammed that down the tories throat at ever budget he delivered! It is those foolish statements that will be in the mind of the electorate and you can bet that Dave will drag all that up for all to see!

Brown arrogance during his time as chancellor will be brought up for all to see...and I bet he regrets all that bile he sicked up. Arsehole!

The tories have been out of power for over 10 years, it'll be hard for NuLab to pin anything onto them...apart from the days of the 80s and 90s...but I doubt the sheeple who are now at an age to vote will really care about those days. Just as the sheeple in 97 didn't care about Labour track record in the late 70s.

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That's not the point Nick, he wasn't in govt when it happened...unless the general masses read Hansard they'll never know what his comments were or what his party line was during the era of mass speculation on assets. The fact of the matter is that Clown made all those tough ass statements "no more boom and bust" etc...in fact Clown rammed that down the tories throat at ever budget he delivered! It is those foolish statements that will be in the mind of the electorate and you can bet that Dave will drag all that up for all to see!

Brown arrogance during his time as chancellor will be brought up for all to see...and I bet he regrets all that bile he sicked up. Arsehole!

The tories have been out of power for over 10 years, it'll be hard for NuLab to pin anything onto them...apart from the days of the 80s and 90s...but I doubt the sheeple who are now at an age to vote will really care about those days. Just as the sheeple in 97 didn't care about Labour track record in the late 70s.

Something i hear more and more is that its thatchers fault. The unions blame tory spivs for the recession and state of public finances.

I was trying to point out that some people will not see what is right in front of them. They refuse to. They see politics as something like supporting a football team. You pick a side at an early age and stick with them. You have a bit of a moan but turn up at the next game.

If DC is to persuade these people, it will need more than a few statements over a few weeks in an election campaign. They have ingrained beliefs not about policies, but about which team. To overcome that takes a lot of work. Work that DC hasnt yet started on.

And that is the biggest danger to our chances of getting rid of the one eyed loon!

Edited by Nick Dastardly

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If DC is to persuade these people, it will need more than a few statements over a few weeks in an election campaign. They have ingrained beliefs not about policies, but about which team. To overcome that takes a lot of work. Work that DC hasnt yet started on.

And that is the biggest danger to our chances of getting rid of the one eyed loon!

I don't really see where you're coming from. A brief glance at polling data will show you that you're wrong.

Cameron doesn't even need to convince anyone to switch 'teams' in order to win. Getting the latent Tory vote to come out will be sufficient.

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