Cameron in the Constituency

It was a great pleasure to welcome David Cameron to the constituency on Monday.

We had a great time being shown around the Fuller’s brewery – one of the constituency’s best known employers and most iconic landmarks.

David also spent time taking questions from staff and talked about how Labour has failed both employers and employees. Under Labour, the state has got too big and the private sector – the wealth creater – has got too small.

When Labour came to power, state debt as a percentage of GDP was just over 40% – but it is now over 53% and STILL growing. The recession simply made things worse, as the country is now saddled with debt which costs more in interest than the education budget. Labour’s plans to tax jobs by increasing the rate of National Insurance contributions rather than making the billions in efficiency savings they admit they could make prove they don’t understand (or care) about the needs of employers. Rather than tackle waste, Labour simply put up taxes instead and go into more debt.

Our message is clear. A Conservative Government will not make it more expensive to employ people, will not increase the cost of National Insurance and will make it easier for employers to employ new staff. We will tackle unemployment - not by politically manipulating figures or through centralised Government schemes, but by setting free businessess and small firms to create new jobs.

Business simply cannot afford Labour’s job tax – and only the Conservatives will protect the interest of the business community, enabling them to create wealth, jobs and prosperity for all.

The political conference season is over, which for most people will be a blessed relief. But with the economy struggling and unemployment rising, the need for a change is growing.


The economy is critical and that's why at the Conference, Conservatives outlined how they will aim to tackle the mess we're in.

There are a number of key pledges for council tax payers, business, first time buyers and pensioners:

• - freeze council tax for two years
• - introduce a £50bn National Loan Guarantee Scheme to underwrite bank lending to businesses and get credit flowing again
• - provide tax cuts for new jobs with a £2.6bn package of tax breaks to get people into work
• - abolish Stamp Duty for nine out of ten first-time buyers
• - raise the Inheritance Tax threshold to £1 million
• - cut the main rate of corporation tax to 25p and the small companies' rate to 20p

Policies like these will have a positive impact not just nationally but on the people and businesses in Chiswick, Brentford, Isleworth, Osterley & Hounslow and I'd urge you to find out more about our economic plans by clicking on the link below.


http://www.conservatives.com/Policy/Where_we_stand/Economy.aspx

Every child with £17k debt thanks to Labour

George Osborne has just launched a poster campaign to highlight that every child in Britain is born owing £17,000 because of Labour’s Debt Crisis.

The stark reality is that under Labour, Britain’s national debt is set to double to over one trillion pounds in just five years. This will have to be paid back. Families will have to work longer and harder as they are facing a bill of more than £2,000 just to pay the interest on this debt.

Gordon Brown promised us no boom and bust......but what have we now got? Exactly that.

As a country, we need change now. We need a change for the better... before Gordon Brown does any more damage.

Brown’s Tax Bombshell

The Government has published their Pre-Budget Report. Their new tax and spending proposals show their plans for higher taxes and record levels of national debt. It includes:

- above inflation hikes (4.5%) in council tax which will be forced on local authorities from this April
- National Insurance will be increased for workers and for local firms
- National debt will hit £1,000,000,000,000 (one trillion pounds)
- Plans are being drawn up to increase VAT to 18.5%

I am extremely concerned about record levels of debt, higher council tax and higher National Insurance on families and businesses. How do we differ, you may ask? Our plan is to:

- freezing council tax for two years by cutting wasteful Government spending
- reducing employment costs for small businesses by cutting National Insurance and a tax break for new jobs
- getting credit flowing by guaranteeing lending to business

We need to find long term solutions to this economic crisis as the impact of this recession will be felt by individuals, families and businesses for the next 4-5 years.

An End to the Borrowing Binge

David Cameron warned yesterday about the Labour borrowing binge which will eventually have to be paid for through higher taxes.

We have always been the low tax Party ... and so it was great to hear the Leader talk about fiscal responsibility and permanent funded tax cuts with the Conservatives. We are in a recession right now, but we want recovery as quickly as possible. We therefore need to start managing public spending better so that we can get the economy back on that road to recovery.

As a Party, we are now not going to match the Labour unsustainable spending plans for 2010 and beyond. It is not affordable. We need to stop the growth in spending or there will be huge tax rises in the years to come.

There is a clear choice between Labour and Conservative. Labour with more economic mismanagement and the same old short-term policies....or the Conservatives with a long-term vision which is more responsible, more balanced with new ideas for the future.

Recession hits

Brown has at long last admitted that a recession is likely in Britain.

Mervyn King, Governor of the Bank of England, already said that this was the case on Tuesday... and most people across the country, and certainly in the city of London, could have told Gordon Brown that weeks ago.

But at least now the Prime Minister is facing the reality of the situation. We are entering our first recession in 16 years. The year ahead will be as bad as the early 90s and many people wil lose their jobs. Mervyn King also said that the British banking system had been closer to collapse earlier this month than at any time since the start of World War I.

What is a recession? Technically, it is a decline in a country's domestic economic output or GDP for at least two consecutive quarters. There have been signs of a widening economic crisis:

- Oil fell below $70 a barrel
- The pound fell to to $1.620, its lowest level against the dollar since September 2003
- Consumer spending is falling (National Institute of Economic and Social Research predicte by 3.4%)
- Business investment is down
- Private housing investment down due to falling house prices and difficulties in financing mortgages
- Rising unemployment

If the government's £50bn banking bail-out does not succeed, the recession could be even deeper and longer.

What is clear from the last few weeks .... the complete and utter failure of Labour's economic record. The PM borrowed and borrowed, and racked up the biggest government deficit in the developed world. Now we have nothing when times get tough.

Our economy is broken and we must fix it. What can we do to help? We need to rebuild an economy that is built to last.

Our solution is about fiscal responsibility, financial responsibility and a balanced economy:
- Fiscal responsibility - the Government must live within its means
- Financial responsibility - you cannot build an economy on debt
- Balanced economy - as you cannot rely on unsustainable growth in a few areas to increase prosperity for everyone.

To repair the broken society, we need need social responsibility. To repair the broken economy, we need economic responsibility.

Managing an Economic Crisis

This is a strange moment in time. Never did I think we would get to a point where we would be 'nationalising' banks in this country. It goes against my Conservative principles. Given though, that we are in the middle of a global economic crisis with a frozen money market around the world, I can live with short term 'recapitalisation'.

The IMF has warned that we are close to financial meltdown. Something had to be down quickly to try and recover the economy and avold an even deeper downturn in the financial markets. The Conservatives are therefore supporting the government on the recapitalisation plan. To do nothing would have been the wrong thing. Exceptional circumstance require exceptional steps.

The important task now is to create a plan for the future. In a free enterprise system, the banks play an important role in creating and stimulating a strong and vibrant economy. We need to strengthen the banks - get them lending to each other again, get them lending to business owners and home owners again. We will not be able to turn the economy around until we strengthen the balance sheets of these banks. We need to though address the systemic failure we have seen in the banking system so that we manage these issues more effectively in the future. We need a significant review of capital rules, liquidity and access to markets. The global regulatory arrangements also need to be looked at.

Should CEOs of failed banks keep their jobs? Well, that is down to the boards of these companies to decide. Mistakes have been made and risks have been taken...and CEOs are responsible for this. Banks should not have been taking irresponsible risks.

Should they be receiving huge bonuses? I believe people can earn good salaries and bonuses if they perform well. If the organisation has not performed...then they do not deserve a bonus.

We do need to help families and businesses at this difficult time. Many people are currently worried about their savings, their mortgages and their jobs.

Gordon Brown promised us that he would get rid of boom and bust. Our current situation shows that either he does not know what he is talking about and/or he cannot deliver what he promises. He encouraged a borrowing binge through our enormous budget deficit. If he wanted to cut taxes right now to recover the economy...he can't. The cupboard is bare.

We all can learn from this ...

Worst economic crisis in 60 years

In the UK, house prices are now falling at double digit rates, and over the weekend the Chancellor fired a stark warning shot about the severity of the downturn. Alistair Darling told the Guardian, that the UK faces its worst economic crisis in 60 years and said the downturn would be more "profound and long-lasting" than most had feared.

According to Nationwide, UK house prices fell for the tenth consecutive month in August, down almost 2% since July. The annual rate of decline accelerated to 10.5%. This is the fastest (and only double digit) decline since Nationwide started collecting monthly data in 1991. With mortgage approvals continuing to slide in July (to 33k), it looks like further price falls are on their way.

House prices are falling at their fastest rate in 18 years, leading to fears of a wave of repossessions. Mortgage lending has slowed dramatically due to the credit crunch while key indicators have suggested that the economy could be poised to go into recession. A member of the Bank of England's Monetary Policy Committee has said that radical action was needed to ensure the crisis did not get worse and warned of a sharp rise in unemployment. There is no growth at all right now, which technically means we are close to a recession. Inflation is rising, unemployment is rising, the cost of living is going up and people are nervous about jobs. Britain is ill prepared due to money not being put aside for a rainy day. Gordon Brown has borrowed far too much. It will be many months ...and probably another year... until there is good news on this front.

So what should we do now?

1. We need strong, clear leadership from the Prime Minister and the Chancellor. They need to speak with one voice instead of the Chancellor saying it is the worst economic crisis in 60 years and Gordon Brown saying it is not as bad as we think. We don't need a disfunctional government right now. It does not bode well for economic recovery. They need to tell us how they are going to get us out of this mess.

2. We need a vision for the future on how we resolve this economic downturn. George Osborne is proposing to:
a) Help people with current economic problems e.g put fuel duty down when the oil price goes up
b) Take first time buyers who need a mortgage out of stamp duty so that they can get on the housing ladder
c) Help low income families to get direct debit rates for gas and electricity bills
d) Reorganise public finances so that we never again borrow recklessly in a boom and are more prepared for a slow down in the economy.

In summary, what we need is a new government that does have a vision and speaks with one voice. We need a change for the better ... a Conservative government.

10p tax u-turn costs us £2.7 billion

The government has completely lost control. Yesterday, the u-turn 10p tax announcement cost us all £2.7 billion. Today they told us about their panic, emergency budget in the form of 18 bills.

The Governor of the Bank of England, Mervyn King, also gave today his worst prediction on the future of the economy:
- growth forecast will reduce to 1% by Christmas
- inflation to rise to 3.7% by late summer

Gordon Brown is now trying desperately to save himself by announcing a compensation package for those hit by his own axing of the 10p tax rate, but 1.1 million low earners on between £6,635 and £13,355 will still be worse off, by up to £112 a year. The poorest people in the country will still lose out.

Has the u-turn got anything to do with the forthcoming Crewe by-election? I think that is very probable!

Can Gordon survive ... or will the people of Crewe say to him "you're fired"!?

MPC try and stimulate the economy

The Monetary Policy Committee (MPC) today has lowered the Bank Rate by 25bps to 5%.

The tensions in the UK money markets combined with evidence of a sharper deceleration in the housing market has spurred the MPC into action. Still, compared to the US who have had several interest rate cuts, 5% is not being overly accommodative. I think there will be another cut or two before the year is out to encourage and support the economy.

We are heading for a difficult year ahead in the economy and people are right to feel nervous. Anything that the Government can do to relieve us of any additional taxation would be good. Thank goodness the London Borough of Hounslow have tightened up for yet another year to give residents value for money and unlike many other Councils, have not increased the Council Tax.

A 'Jumpy' Economy

In the Financial Times today, the head of the CBI, Richard Lambert, says that "Britain's economy is heading into much jumpier waters". The CBI have marked down its latest growth forecast to account for the deepening credit crisis and believe that the economy is unlikely to revive until the second half of 2009.

There are tough times in the year ahead ...and we will feel it. Not a great time either for Gordon Brown, who in my view, is still playing Chancellor as well as Prime Minister.