All posts tagged: Osborne

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To what extent was prioritising deficit reduction a successful policy choice since 2010?

The Coalition government from 2010 until 2015, made up of the Conservatives and the Liberal Democrats, sought to prioritise deficit reduction above all other considerations. This was in the wake of the 2008 global banking crisis which strained the UK economy and heralded the policy of austerity connected closely with the Chancellor Osborne. It was partly successful in creating jobs and some growth but the policy has been controversial. Labour have argued it has not served the least well off, some conservatives have argued it had not reached its intended aim of removing the deficit altogether and it is claimed the government, without acknowledging it publicly, did slow down deficit reduction and prioritise growth after 2013, which stands today at just 0.3% in the last quarter.

Weekly Parliament Roundup: 5th -10th January

‘Empty chair’ threat for Cameron if he doesn’t participate in TV debate Miliband, Clegg and Farage have recently expressed the fact that they are ready to ‘’empty chair’’ David Cameron by going ahead with the leaders’ election debates on TV without Cameron if he keeps on stressing upon his demand that the Green Party leader Natalie Bennet also takes part. The leaders’ wishes might come true as Ofcom and the TV broadcasters are able to legally ‘’empty chair’’ Cameron, as long as his views are represented within the debate. Cameron’s recent insistence on the Green Party joining the debate if he is to participate has been seen by the other leaders as his attempt to go Green again and that this is his ‘’Naked device to sabotage the TV debates, by tying up the broadcasters in interminable red tape’’. Ed Miliband plans four million doorstep visits in bid for No 10 Ed Miliband is urging Labour activists to carry out four million conversations with members of the public before the general election in May. According …

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Woodhouse Weekly Pick of the Papers: 8th-15th September 2014

Fracking is a toxic issue for Conservative party grassroots Source: The Guardian As Topic: Elections A2 Politics: Environment Fracking has the ability to give the UK another supply for energy, which has the potential to drive down energy prices for the economy. However, this has caused great controversy in safe Tory seats, with constituents pledging to run anti-fracking campaigns and research from Greenpeace and the Guardian has shown that 120 safe seats have protest groups in them. On top of this, 31 of the 40 key marginal seats identified by the party have these protest groups. This bodes ill for the Conservative party, who have deviated from green policy.   The TTIP hands British sovereignty to multinationals Source: The Guardian A2 Topic: Economic Policy The TTIP is a treaty between the EU and the USA, being marketed by its champions as a economic stimulus package for ailing Europe, providing up to £100bn in extra growth. It is presented as a free trade agreement, but existing tariffs on either side of the Atlantic are already weak …

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Is the UK economy rebalancing?

Is the economy rebalancing as proposed?   It is coming up to 4 years since Osborne decided the UK economy needed to be rebalanced. By ‘rebalancing’, he proposed a self-sustainable and largely export led economy. An economy that no longer relied on the financial services of the City, which appears to benefit suited men who know better how to ruin an economy better than those on Downing Street know how to fix one. Moreover Osborne pleaded for an economy with a higher propensity to save as opposed to one which will pay the price for further unsustainable private and public debt. Four years on, there seems to be a lack of policy aimed towards accomplishing a rebalanced economy. When the economic recovery began in 2009 the conditions seemed to be in place for a manufacturing exports-led resurgence. The pound depreciated significantly during the financial crisis, providing UK manufacturers with a competitive edge. And with domestic spending still slow, it wouldn’t have been surprising for UK firms to look to overseas sales for growth. Manufactured goods …

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AlevelPolitics Economy Update: March 2014

*** Economy update – March 2014 *** The tide has somewhat turned in the Conservatives favour. Less than 18 months until the General election and the economy seems to be resuscitating. Better late than never I suppose. With Mr Osborne revealing his last budget for this Parliament next week, the Tory party are trying to map out their economic stance. It is clear that the 2015 general election will be laden with tax and spend policies, as the main parties not only try to prove that they are economically credible but that their policies seek to benefit the hard working. The first three years of the coalition were characterised by flat lining growth, missed targets, a loss of Britain’s AAA debt rating and a triple-dip recession scare. However, the latter part of 2013 saw improvements in almost all macroeconomic sections. Economic growth for 2013 measured up at 1.8% compared to the sluggish 0.3% of 2012. Osborne insists that his “long term economic plan is working”, with economic growth complemented by increased investment and fast pace …

Weekly Parliament Roundup: 22nd-29th January 2014

Weekly Parliament Roundup: 22/01/14-29/01/14 50p Tax rate for the Rich: Ed Balls recently said that a future Labour government promises to achieve a budget surplus, falling national debt and a 50p top rate of tax for the rich. Businesses have criticised the third proposal by saying that it will harm the economy and put a stunt on job production. However, Ed Balls said that Labour’s Plans to reintroduce the 50p top rate of tax does not mean that the party is against business. Despite this, more business figures have said it is sending the wrong signals. Alistair Darling supported Ed Balls by saying that the timing for making this proposal was right since the General Elections are only about 15 months away. Even though there’s a lot of support for the proposal, Former trade minister Lord Digby called it ‘lousy economics’ in the sense that it might prevent businesses from investing in England. The Immigration Bill The Immigration bill was back in the Commons last week and Tory rebels have been threating to reinstate controls …

Woodhouse Weekly Pick of the Papers: 13th-19th January 2014

Pick of the Papers (13/01/2014 – 19/01/2014) Woodhouse’ weekly pick of the papers is devoted to keeping A level politics students up to date with the political news and on track with the Unit 1 and Unit 2 syllabus. 1. UKIP tops Independent on Sunday Poll as the nation’s favourite party Source: The Independent Politics Topic: Party Policies and Ideas Summary: A shock to the Conservatives and the Labour Party as UKIP is seen as the nation’s favourite party. This will underline concerns that UKIP could come first in May’s European election and this could be potentially deny either the Labour Party or the Conservatives an outright majority in the 2015 general election.   2. Why the sudden Tory U-Turn on the minimum wage? Fear of Miliband Source: The Guardian Politics Topic: Party Policies and Ideas Summary: The Chancellor of the Exchequer reflects his party’s worry of Miliband and they are worried that Miliband is turning voters against them and onto things that matter. This is enough to stop a man who is wedded to his …

Weekly Parliament Roundup:4th-11th December 2013

Parliament Roundup: 4/12/13-11/12/13 MPs to receive 11% pay rise: Click for a video explanation IPSA(Independent Parliament Standards Authority) have recently proposed to provide MPs with a pay rise of 11% which will increase their salary to £74,000. They have stated that there will be changes to the pension scheme which will save tax payer 2.5 billion pounds if the rise is to take place. Even though this might be seen as a great thing for the MPs, lots of them are scared to state publicly that they think it is a good idea. The main issue with this proposal is that it might be the wrong time to make such high rises in MP’s salaries when other public sectors are facing difficult freezes. However, of this proposal is to go ahead, it will take legislation in 2015 to stop this from occurring. The public might not like the sound of the proposal at first because many might feel that the MPs don’t deserve such a high pay rise as they have failed to improve costs …

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Economic Policy differences and similarities – Labour and Coalition

1. Tax – Difference Labour argues that the Coalitions economic plans are hitting the ‘poorest, hardest’. The Conservatives have lowered the top rate tax to 45% and staged a decrease in corporation tax which is to be 20% by 2015. The corporation tax cut will cost the Chancellor 400m in 2015-16 and so he is taking a risk on business which links into a later point. The Labour party has said it would consider the mansion tax proposed by the Liberals. This was partly a political manoeuvre to appeal to the Liberals or cause tensions in the coalition but also to show they are the party on the side of the working class. Ed Balls claimed that the benefits of the rising of the personal allowance to £10,000 would be swamped out by the higher VAT and cuts to tax credits. Figures from the IFS supported this showing that one earner families would lose an average of just under £4,000. 2. The private sector – Difference Osborne went about such a strong cuts agenda believing …

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A plan for growth?

At cabinet this week, David Cameron forced his colleagues to confront failures in the government’s economic growth strategy. It is often argued that elections are won and lost on the basis of the economy, and with a somewhat gloomy outlook ahead and a tumultuous past lingering, the government knows that the economy is its main focus for maintaining electoral support and the opposition know it as well.