Tuesday, 12 March 2013

Eastleigh saves the day

The electors of Eastleigh have given the Liberal Democrats a continuance of the coalition but also a warning that 2015 will see a significant protest vote for UKIP and the real possibility of a hung parliament.

It is most likely that Labour will be returned to run the next government but they may lack a working majority. Cooperation between Labour and the Lib Dems over the Leveson Vote on March 16th will herald the way for future Lib-Lab arrangements over opposition to Conservative Austerity and the promotion of a practical plan for economic growth, following another failed Osborne Budget. A growing consensus between Bank of England Governor, Vince Cable, Ed Balls and leading financial journals such as the Economist and the Financial Times will see a 2 fold plan to lower the deficit and stimulate growth.

Areas for Budget Cuts
  • Switching major government purchases towards a "Buy British" - increasing the % of government spending to UK owned and based companies, especially SMEs in preference to US, Chinese, and European corporations
  • Maintaining spend on employees whilst tackling waste in all government departments including IT spend, NHS waste 
  • Relocation government jobs out of the expensive South East and London towards Northern England and Wales where salary costs are 50% the London average. Major sell off of land, government buildings and real estate in London which raises £500 billion. Relocation of Houses of Parliament from London, closure of MOD offices in London. 
  • Closure of all Job Centres
  • Tobacco Duty raised by 50%
  • Supermarket Alcohol Duty of 50 p per unit
  • HS2 Scrapped
  • Trident Replacement scrapped
  • Banking Reorganisation scrapped, Banks shares given to public.
  • Smoking Ban to be amended to ban smoking in presence of children, and allow smokers rooms (with air extraction) in pubs, smoking banned in beer gardens and public streets.
Areas for economic stimulus

  • Cut in Fuel Duty takes 10p off petrol and stimulates growth while cutting inflation
  • Ending of Job Seekers allowance which is replaced by Payroll Work Experience Credit paid to employers which are given one unemployed person per company.
  • Sole Trader Corporation Tax Rate reduced to 10%
  • Limited Company Small Business Corporation Tax Rate reduced to 15%
  • All Social Housing and Government buildings to be insulated and given solar panels 
  • Stamp Duty scrapped
  • Employers National Insurance Holiday paid by Mansion Tax on £2m houses
  • VAT Cut to 17.5 % paid by ending zero rating on books and food and extending VAT to all businesses.
  • Infrastructure projects - Severn Barrage, Electric Car points
  • All UK businesses to be assisted to employ, export and carry out e-business.

No comments:

Post a Comment