Osborne announces credit-easing plan but "no unfunded tax cuts"
Chancellor George Osborne has offered what he claims is a glimmer of economic hope to the electorate.
In his speech at the Conservative Party Conference, the Mr Osborne said that with resolve, determination and confidence he hopes to appease the fears of the British public, who is increasingly concerned about job security and personal finance.
Mr Osborne claimed that the gravity of the global economic turmoil should not be underestimated, but added that the situation is far from hopeless.
He said three grave mistakes had been made that had helped get Britain into the financial mess it is in today.
Firstly, the government borrowed beyond its means; secondly, the banks were allowed to rack up staggering amounts of debt themselves and finally, Europe pushed ahead with a single European currency without adequate assessment of the potential consequences.
Mr Osborne believes that boosting public borrowing as a means of kick-starting the economy is not the answer.
He told conference delegates: "Let's say we added to the structural deficit with more borrowing.
"We'd be gambling the priceless fiscal credibility that this government has earned with the international markets on the bet that borrowing a few billion pounds more would make all the difference."
"You can't borrow your way out of debt," he concluded.
However, the chancellor did announce that the government would boost lending to businesses, both directly through the purchase of bonds and indirectly by brokering a deal with private lenders to support UK plc.
David Blanchflower, who is the Bruce V Rauner professor of economics at Dartmouth College, told the Guardian that little new appeared to have been announced by Mr Osborne, who is sticking with a plan that was implemented when the economy was growing - despite the fact that it is now "tanking".
Use the Myfinances.co.uk comparison tables to keep your household bills down
- Tags:
- conference ,
- conservative ,
- credit ,
- economic recovery ,
- george osborne ,
- news ,
- tax ,
- tax cuts
Comments
Newsletter sign up