UK ECONOMY - DOING WHAT IS RIGHT IN
NATIONAL INTEREST

 

History's verdict on David Cameron and George Osborne will

not rest on performing whatever economic contortions that are

necessary in order to save Conservative skins at the 2015

election. The country's dire economic state and its democratic

future demand that the Prime Minister and Chancellor act as

statesmen rather than politicians and look beyond the

electoral fate of their party to the spiralling debt that will be

the inheritance of our children and those yet unborn.

 

The Government should not be concerned about political

unpopularity and address our rapidly deteriorating economic

situation. It is one where tax revenues are declining by 7%

annually but social spending continues to grow by 8%, funded

by slashing capital investment and increased borrowing, which,

according to the Treasury, will raise the national debt by 40%

by 2016. This is a level at which no government will be able to

fund its budget deficit, as the international bond markets take

fright.

Voters must be disabused of the notion that we can grow our

way out the problem when the economy, together with the

economies of our main trading partners is, at best, flatlining,

with little prospect of any medium-term improvement.

 

The Prime Minister and Chancellor must have the courage

to take the tough choices needed to bring the economy back

into equilibrium. This can achieved by cutting the size of the

state, accelerating supply-side reforms, switching current

spending to capital investment, in order to create more jobs

and the introduction of a flat tax.

 

Continuing with the status quo, hands tied by a

disproportionally influential junior coalition partner, will

inevitably result electoral defeat. Doing what is right for

Britain just might produce a different outcome.

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