George Osborne has announced that the Tories will reverse the increase in National Insurance Contributions for 7 out of 10 people including Employers contributions. That is to be welcomed as increasing taxes on people and employers will be a bigger drag on recovery than any removal of the existing ‘stimulus’.
It’s also quite right that if there are to be efficiency savings of £11Bn can be found for 2011/12 then they should be brought forward to 2010/11. In fact how can any Government seriously think that it is good to continue with something which they know is not performing at its most efficient! I do think though, that it would have been a good idea if Mr. Osborne had announced a mix of savings and spending cuts to finance the tax cut. It would have been a big signal that the Tories are going to ‘get real’.
There is too much emphasis on efficiency savings and waste, and no doubt a lot can be found, but we are getting used to the promises but are still awaiting the delivery. The existing review announced a few years ago identified £35Bn of waste and efficiency savings, with only one year to go only £11Bn has been found.
Squiffy.
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