According to the Conservative Party website the Conservative Party will try to achieve the following if they gain power at the 2010 general election:
We desperately need a change of direction.
Under Labour, Britain is stuck in the longest and deepest recession on record, and remains the only G20 country still in recession. We face the largest budget deficit of any major economy, and national debt soaring to £1.5 trillion. We have had the largest bank bailout in the world, and one in five young people can’t find work.
A Conservative government will take three key steps to rebuild our broken economy:
* First, we still face a credit crunch. So we need to get banks lending again. For over a year, we have been calling for a National Loan Guarantee Scheme to underwrite bank lending to businesses, to save businesses and protect jobs. And we think that instead of paying out significant cash bonuses, banks should be rebuilding their balance sheets so they can start lending to businesses again.
* Second, we face a debt crisis. We have been honest about the need to tackle Labour’s debt crisis, and set out some of the tough choices we will make. To restore investor confidence, we need a credible plan to get the £178 billion annual deficit under control. That means taking the tough choices in public spending we have set out, such as a one-year public sector pay freeze, except for the lowest paid.
* Third, we face a jobs crisis. So we need a plan for growth. We will abolish all tax on jobs created by new companies for two years; we will introduce a radical new programme for everyone who is unemployed so we can Get Britain Working again; and we will create a high-skill economy by building a new generation of technical schools, creating 100,000 new apprenticeships, and funding 10,000 extra university places.
Britain has the resources, people, ingenuity and ideas to get us out of recession. We just need a government that will help, not stand in the way.
Tackling the deficit and protecting frontline public services
Unlike Gordon Brown, we have been honest about the scale of Labour’s debt crisis and have set out some of the tough measures we will take to tackle the deficit. These measures could all be implemented without harming frontline public services, and show how the burden of dealing with Labour’s debt crisis should be shared fairly while protecting the poorest and most vulnerable in our society.
These are examples of specific savings that should be made in addition to the tens of billions of pounds of efficiency savings and productivity improvements that the Conservatives would deliver throughout the public sector over the next Parliament in order to reduce waste, deliver more for less, and protect frontline public services:
* A public sector pay freeze, except for the lowest paid. We will freeze pay for all public sector workers in 2011, except for those earning under £18,000. The savings from this are equivalent to protecting more than 100,000 jobs.
* Cutting the cost of Whitehall and quangos. We will cut the cost of Whitehall bureaucracy and quangos by at least a third by the end of the next parliament.
* Capping public sector pensions. We will cap public sector pensions at £50,000 per year.
* Stopping Child Trust Funds, except for the poorest families and disabled children. We will stop new spending on Child Trust Funds for better off families. But to protect the poorest and most vulnerable, disabled children and the poorest one third of families should continue to receive both new Child Trust Funds at birth and top-up payments.
* Stopping tax credits to high earners. We will stop paying Child Tax Credits to those earning over £50,000.
* Review of the state pension age. We will hold a review to consider bringing forward the planned rise in the state pension age.
* Creating an Office for Budget Responsibility. We will create a new Office for Budget Responsibility to assess independently the sustainability of the public finances and hold the Government to account.
To help struggling families and businesses we will:
* Freeze council tax for two years by reducing unnecessary Government spending on consultants and advertising.
* Abolish tax on new jobs. We will abolish tax on the jobs created by new businesses in the first two years of a Conservative Government. Any new business started in the first two years of a Conservative Government will pay no Employer National Insurance on the first ten employees it hires during its first year. The tax break will encourage new entrepreneurs and is predicted to generate around 60,000 additional jobs over two years.
* Take first-time buyers out of Stamp Duty. We would help first-time buyers facing higher mortgage costs by taking 9 out of 10 out of Stamp Duty altogether.
* Make only millionaires pay Inheritance Tax. We will raise the Inheritance Tax threshold to £1 million, taking the family home for the vast majority of people out of Inheritance Tax altogether. We will pay for this by charging a flat-rate levy on UK residents of foreign origin who are tax-domiciled offshore.
* Reduce Corporate Tax. The headline rate of Corporation Tax will be reduced from 28p to 25p as a first step to lower business taxes, funded by a reduction in complex allowances.
* Reduce Tax On Small Businesses. The small companies’ rate of Corporation Tax will be cut from 22p to 20p, paid for by removing complex new investment allowances.
Conservative Party Economy Policy :http://www.conservatives.com/Policy/Where_we_stand/Economy.aspx
I would be interested to hear both positive and negative views on Conservative’s Economy policies in the comments below?