uk conservatives Archives - Stephen Taylor

UK Conservatives unveil budget

The problem:
– $1.3 trillion debt.
– Budget deficit is 11% of GDP

The planned solution:
– Increase VAT from 17.5% to 20% by January
– Axe treasury department looking into adopting the Euro as the common currency
– Public sector pay freeze
– Child tax benefit freeze for 3 years
– SMB tax rate from 21 to 20%
– plan to reduce corporate tax rate to 24%
– bank levy to be introduced by January
– 28% on capital gains

The UK is facing hard times. Its budget deficit to GDP is second only to Ireland in Europe. Its domestic demand was -1% during 2009 while that of Canada was +2.6%. The Harper government also plans to cut the corporate tax rate to 15% by 2012 while Michael Ignatieff has said that he would freeze corporate taxes at 18%. In October 2009, the IMF had predicted the UK’s net debt to increase to over 90% of GDP while Canada’s net debt position stands under 30% of GDP (and debt-to-GDP ratio about 35%). Canada’s absolute debt stands at $529 Billion and this country’s deficit stands at $56 Billion.

Here is the UK budget released today:

Running away from the brand

In Canada, the Conservatives unapologetically spend, while in the UK, they are about to cut — but not without apology.

An email I just received from the UK Conservatives addressed to party faithful:

Dear Stephen,

Ahead of next week’s budget, it’s important to remember that the debt crisis that threatens us is Labour’s legacy to Britain.

Labour left us with no money – only waste and debt:

– They left every man, woman and child owing £22,400
– They gave us one of the worst budget deficits in Europe
– They left 2.47 million people out of work
– And they sold off Britain’s gold at a 20-year low in the market.

Unless we act now to deal with this crisis, interest payments in five years’ time could end up being higher than the amount we spend on schools, climate change and transport.

That’s why we have to do something about it. The cuts that are coming are Labour’s cuts.

So before Tuesday’s crucial Budget, take a look at this document outlining Labour’s Legacy to Britain.

But don’t just keep it to yourself – please send this email on to your friends and family to help make sure Labour are never allowed to leave such a rotten legacy again.

Sayeeda Warsi
Co-Chairman of the Conservative Party

The legacy of Britain’s debt is Labour’s to be sure, but in an email to those that elected you, claim credit for taking action. These cuts are your cuts and you should proud to implement the plan to address the crisis.

And gosh, no money to address climate change?

Stephen Harper congratulates David Cameron

Just received:

‎A few short moments ago, Prime Minister Harper spoke with the new British Prime Minister, David Cameron.

Prime Minister Harper warmly congratulated PM Cameron on his electoral victory and appointment as prime minister by Her Majesty the Queen.

Prime Minster Harper told Prime Minister Cameron that “we will see each other in Muskoka and Toronto at the upcoming G-8 and G-20 Summits. The relationship between our two countries means a lot and I look forward to working with you in the years to come. Give my best to your wife Samantha, Laureen and I look forward to meeting her. Once again Prime Minister congratulations and my best wishes.”

Note: Prime Minister Harper has previously met Prime Minister Cameron while he was leader of the opposition.