Friday, 10 August 2012


The Bank of England (BoE) has cut its growth forecast to close to zero from about 0.8% predicted in May.

This is a complete hammer blow to the Tory-led coalition. Back in the beginning of 2012, BoE forecasted 2% growth for the coming year, to see it get shot down to 0, is a clear repudiation of the Cameron regime.

Let’s call a spade a spade; Cameron is leading this government, the buck stops with him, NOT anyone else and HE is failing miserably.

Everyone knows that the coalition is in a mess and essentially directionless. I know that policies shouldn’t be governed on popularity, but when you see the likes of Ed Milliband, Ed Balls and Harriet Harman offering a brighter alternative, alarm bells should be ringing.

Anyone who thinks that the Cameron Government is clear in articulating their policies is living in a fantasy land. Cameron has allowed others to define his policies to a detrimental effect.  I know that he feels compelled to seek the advice from Nick Clegg and his minions of anti-capitalists but that has proven to be a wasted venture.

How can the Cameron Government change course?
Simple, he should look to the guidance of U.S. President, Ronald Reagan who once famously said:

 “We should, in campaigning and in governing hold up a banner of no pale pastels, but bold and vibrant colours and if we did that, we would win”.

Instead of bashing bankers, pensioners and cowering to trade unions; he should take the ‘bull by the proverbial horn’ and offer ‘supplied sided’ governmental policies aka capitalism.
By cutting tax rates across the board; tackling governmental spending, talking up the UK and not cowering to the European Union Court of Human Rights would be a good start for one.  

Let’s start with the taxes

The income tax rates are:

·         20% for anyone earning up to £34,000
·         40% for anyone earning up to £149,999
·         50% for anyone earning over £150,000
·         Corporation Tax is at 24%
·         Capital Gains are 28% for individuals
·         Value added Tax (VAT) is at 20%

Essentially, each rate needs to be lowered by 10% at least.

Like it or not, the wealthiest people and corporations, hire the most people so essentially, we need to cut their taxes so that they can expand.
Before you mention class warfare, please note that everyone paying taxes will see their taxes go down.
When a company wishes to expand, it would mean more employment opportunities which in turn means someone else will join the payroll scheme and will then be paying taxes. At the moment the corporation and income taxes are prohibitive for mass hiring.
You will say, and rightfully so, that this tax policy will mean lower revenue coming into the government. However, tax revenues would not keep rising with increasing tax rates. At some point, increasing tax rates would reduce total tax revenue—and diminishing tax rates would increase it.
At the same time, we have to lower our spending and as a start we need to be looking at the issue of Britain and its entitlement society. One of the biggest expenses for our government is, Welfare at £111.7bn.

The welfare system is crazy at the moment! when someone gets something for doing nothing, that is ridiculous and has to stop. 
Cameron will please a lot of people by proposing reforms which requires recipients of welfare cheques to begin working after two years of receiving benefits and in addition; placing a lifetime limit of five years on benefits paid out. failure to comply will result in you losing the privellige of recieving taxpayer funding.

This reform was enacted in America back in 1996 and resulted in 2/3 of people getting off the welfare system and going back into work, or going to college.

By implementing this policy, you will see welfare cost's lowering, along with the national debt, as more people will be paying taxes as opposed draining government’s resources.

Cameron can easily put this forward to the Commons and he's in ‘no lose’ situation. If he puts it up for a vote and he wins, that that is massive achievement for the country...and for him.
If he is defeated by Clegg and Milliband; it will be seen as weak on their part as they are happy with the entitlement society continuing on.
Cameron then has control of the issue and can prod away each day about how they aren’t serious about fixing Britain.

The idea of proposing such ‘radical’ reforms will never happen, primarily due to this weak centre-left coalition government, his lack of a core values and principles and his even more pathetic Chancellor, George Osborne. 

The key to Cameron’s success is the removal of Osborne with a replacement who is a pure capitalist, hell bent on reforming broken Britain.

Until such a time, we are more likely to hear phrases from Karl Marx, rather than Ronald Reagan!