Wednesday, 7 April 2010

National Insurance Row

Gordon Brown and David Cameron have again traded blows on the issue in their final Commons clash before the election.

Mr Cameron argued that Labour would "kill" the economic recovery with the planned 1% National Insurance increase, due to take effect next year.

The Tories, who have now the backing of more than 60 business leaders on the issue, have pledged to reverse most of the proposed rise if they take power.

But the Prime Minister said that would mean spending cuts that would threaten vital public services as well as Britain's economic recovery.

The row was inflamed this morning when Mr Brown in a GMTV interview this morning said business leaders who backed the Tory plans had been "deceived".

What the Prime Minister was trying to convey, is that the Tories are deceiving the public as a whole and I completely agree with him. The Tories are trying to have it both ways, there saying they can radically cut the deficit as well as protect frontline services, and not raise taxes; that is completely inconceivable.

Mr Cameron and Mr Osborne are saying that they can avoid the the NI tax rise by cutting government "waste" i.e efficiency savings, well this is what David Cameron said in May 2008 about efficiency savings, "The government ‘efficiency drive’ is one of the oldest tricks in the book. The trouble is, it’s nearly always just that – a trick." That quotation just speaks for itself.

The Tories and the business leaders supporting them are saying that a NI rise would be a "tax on jobs", thus leading to job losses. But when Chancellor Gordon Brown raised NI in 2002, no job losses resulted from that decision. The opposition counter this by saying that was the boom years, now the economic conditions are different. But it is imperative to remember that this tax rise comes into effect in 2011, when the economy is expected to be locked in growth.

The choice for the electorate is quiet simple on this. If you don't want to support and protect the investment in our public services - then vote Tory.
If you value our frontline services and want to support the NHS, schools, childcare and policing - then vote Labour!