Claig … re “The Tories should stop ridiculing people for expressing some fear over the future.” – this is a topical point, that UKIP will influence for the worse.
I guess you did not see Newsnight last night, as separate to whether Labour’s policies similar to those in France would have given us such a flat growth, near record unemployment economy as well – they were looking at the GLOBAL situation, which we depend on, which looks dire and similar to the early 1990’s Japan’s financial caused recession, called (prematurely) ‘The Lost Decade’, as it lasted over two decades.
In a nutshell, it looks that the world is entering a SUSTAINED low growth but too low inflation period, resulting in a negative affect on wages, future business investment and new jobs, and positive affect of ‘inflating away’ existing debt e.g. mortgages, that wrinklies like me, until now worried about the Base Rate 'normalising' to between 4-5%, remember helped us pay down our mortgages.
From 2015 IMO in such a world, the UK in order to continually help low private sector wage growth, is to keep taxes as low as possible by keeping the cost of government/public sector down as much as possible – as in such an external and internal UK economic environment, INCREASING taxes to reduce the budget deficit and/or go back to fat government, will take us on the road to France.
Andrew Neil pre PMQT hit upon the problem of why the Deficit has not fallen more, the UK tax take has not increased much from the growth and new employment we have already seen since 2010 – but then again fails to recognise the much needed tax cuts to help that business growth and help our ‘cost of living’ pressures, plus new pension formula increases etc.
There is a very fine balance when ANY government is facing the highest (nominal) deficit in Europe, but also needing to pay our annual bills and services, growing the economy/jobs and trying to compensate for a low inflation, low wage rise environment, where the vast majority of our employers if not struggling now, will do so NEXT year and beyond.
The French (and Labour) penal taxes and corporate bashing was clearly not the answer until now, and looking forward - that anti competitive strategy can only make matters worse – therefore the voters need to understand what ideology, no matter how imperfect, creates the sustainable economy and which one does not. Simples.