From the TUC

What would a Tory Budget actually do?

22 Nov 2009, by Guest in Economics, Politics

David Cameron has announced today that if his Party wins the election, they will hold an emergency Budget within fifty days. On describing the likely content of that Budget, he said it would be:

“about getting the deficit under control. But it should also be a budget that goes for growth that gets this economy moving again,”

Cameron also repeated the commitment to cut business taxes.

Is this really credible?  A Budget that reduces the deficit through spending cuts and reduces taxes and is a “go for growth” Budget (the phrase usually associated with a more Keynesian investment approach).  A triangulation too far?

Maybe also some nervousness about how the “austerity” approach is playing with the electorate.  Note his rather unsure description of the announcement of measures to reduce the deficit:

What you need is a plan to get the deficit down, you have got to demonstrate to people that you are serious by taking some steps in your first budget and you set out those steps.

Is that a commitment to start actually cutting as soon as possible after the election (which seems to have been Tory policy previously) or the much softer measure of setting a path to deficit reduction over the medium and longer term (which arguably the Government is already doing)?  It’s not that clear.  I think the Tories could be shifting.

6 Responses to What would a Tory Budget actually do?

  1. Tax Research UK » What would a Tory Budget actually do?
    Nov 22nd 2009, 9:20 pm

    [...] What would a Tory Budget actually do? | ToUChstone blog: A public policy blog from the TUC. [...]

  2. What would a Tory Budget actually do? | called2account
    Nov 22nd 2009, 10:40 pm

    [...] What would a Tory Budget actually do? | ToUChstone blog: A public policy blog from the TUC. [...]

  3. Tim Worstall
    Nov 23rd 2009, 10:38 am

    “A Budget that reduces the deficit through spending cuts and reduces taxes and is a “go for growth” Budget (the phrase usually associated with a more Keynesian investment approach).”

    Err, no. It was, at the time that Anthony Barber showed that this Keynesian approach doesn’t work, but it is now more associated with supply side economics. You know, get growth by reducing spending (ie, reduce government crowding out) and reducing taxes (increasing incentives).

  4. Tory business tax cuts threaten public services and poorest | Left Foot Forward
    Nov 23rd 2009, 11:02 am

    [...] Foot Forward has previously shown. The alternative is further public spending cuts. As Adam Lent at Touchstone asks: “Is this really credible? A Budget that reduces the deficit through spending cuts and [...]

  5. Cameron on the deficit: popular with the CBI but what about the voters? | ToUChstone blog: A public policy blog from the TUC
    Nov 23rd 2009, 3:33 pm

    [...] speech also continues with the “everything for everybody” approach that characterised Cameron’s interview with Andrew Marr yesterday.  In fact, far from indicating that growth will result from simply [...]

  6. Adam Lent

    Adam Lent
    Nov 23rd 2009, 3:35 pm

    I’m not sure this is Cameron’s argument. See my new post.

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