Tory Election Campaign (AKA The Autumn Statement)

So there you have it……the Autumn Statement gave us pretty much what we were expecting – something for all voters to be happy with!

For homeowners……(and 80% of voters are)

A new approach to stamp duty that will make 98% of all property sales cheaper.

For the over 55’s……(a huge voting block – 75% will vote)

ISA limits to increase again in April and as well re-confirmation of revolutionary changes to pensions.

For Bank Bashers……(apparently 95% of voters distrust them)

Closure of a tax loop hole that will hit corporate profits.

For Middle England……

An increase to the 40% tax limit meaning higher rate tax payers will be £224.00 per year better off.

For Families……

Flight duty scrapped for young children (under 12).

For Students……

Loans will be made available for post-graduates.

All in all, it was a crowd pleasing election sweetener where everyone got a little bit. What is more impressive, is that this was a neutral give away in that it didn’t cost a penny as it was funded from savings / taxes elsewhere.

Just don’t mention Government borrowings or the deficit……it was quickly thrown away.

Just another 6 months of this political strutting to go……thankfully!

General Election White Elephant

Christmas will be here and gone before you know it and all eyes will turn to the General Election in the first half of 2015.

It’s interesting that all the political opponents are happy to create small arguments to gain small political points, yet the biggest issue of all is likely to remain unearthed……Public Borrowing.

You see, Public Borrowing is such a negative subject and there is little to be gained by mentioning as part of election campaigns. Let’s put it simply……there are only two things you can do with the public debt: (1) Increase It or (2) Reduce It through public service / austerity cuts. Either way, you can’t win as a political party. So what’s the alternative……simply don’t mention it!

Watch how little airtime this subject gets……it will frighten you.

But here are the simple facts that you need to know:

 

- This financial year's borrowing target is £95.5 billion.

 

- With 6 months of the year left, the Government have already borrowed £64.1 billion

 

- £64.1 billion is an increase of £3.7billion from the same period last year.

So, it looks very unlikely the Government will hit its target. In fact, despite years of austerity, public borrowing is increasing and it will rise further.

A recent report has warned that more than £3 billion of taxpayer money was required to deal with massive structural issues with the House of Parliament building or it could be left an unusable ruin.

Given the above, perhaps it already is.