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Cameron says Osborne is staying as chancellor

Prime minister David Cameron says chancellor George Osborne will still be in the role at the next election following calls for him to be replaced.

Office for National Statistics figures showing a 0.7 per cent drop in gross domestic product in Q2, 2012, the third consecutive quarter of falls, has led many to question Osborne’s performance in the role.

In response to the figures, former Liberal Democrat Treasury spokesman Lord Oakeshott branded Osborne a “work experience chancellor” who should be moved ahead of an expected Cabinet reshuffle in the autumn.

But in an interview with Sky News last night, Cameron gave his full backing to Osborne.

He said: “George Osborne is doing an excellent job in very difficult circumstances and he has my full support in going on and doing that job.”

When asked if Osborne will still be chancellor at the next election, Cameron replied: “He is not going anywhere… yes.”

Cameron refused to be drawn on other Cabinet moves.

Business secretary Vince Cable has said Osborne is doing a good job and he disagrees with calls for him to be replaced.

Former chancellor Lord Lawson has called on Osborne to focus on being chancellor and not on political strategy for the Conservative party.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Cameron is more stupid than I thought.
    This is clearly a case of Eton nepotism or who’s “back pocket” is he in.
    The case is clear the chancellor is useless driving the country to ruin and creating an even greater dividing line he’s like a cancer and he needs to be surgically removed for the good of the body

  2. A chancellor with no experience other than political who is failing to produce the solutions needed to rectify the financial disaster this country is in?…..Oh what a suprise!

    This headline should read “Eton buddies stick together through thick and thick”

  3. He also said he will stamp out red tape and quango costs for small busineses

    Pfft !!! what a crock, FSA anyone ?

  4. Paul, Adam – Osborne was at St Paul’s, not Eton.

  5. No one could reasonably deny that Osborne has on his plate a very difficult situation, but any claim that he’s “doing an excellent job” is rather difficult to accept, given that he’s manifestly failed to get the economy out of second gear.

    The reason the present state of affairs persists is a collective failure to recognise the fact that the UK economy is consumer based and that the only way to move it up a gear is to encourage consumers to consume. The obvious lever that needs to be pulled is to cut VAT in half. Whilst such a move probably wouldn’t double VAT’able transactions, what it very probably would do is get money moving round the economy, thereby generating all sorts of tax revenues other than VAT such as income tax, corporation tax and NIC tax.

    Increased demand for goods would also encourage businesses to invest capital instead of sitting warily on large cash war chests. This would generate employment which, in turn, would generate more spendable income. More income being spent would generate more VAT, so the economy would move into an upward spiral. Surely, the injection of a shot of nitro such as this is what kick-starting the economy is all about?

    Like all governments, the present one trots out the same old statements about having to make difficult and bold decisions, yet most of its decisions thus far seem to be about what NOT to do instead of introducing policies that will actually tackle the present crisis of low consumer confidence and low consumer spending.

    I’m no economist, but cutting VAT seems to me to be the most important and potentially effective measure to revitalise the economy, yet it’s the very one from which the government seems to be intent on shying away from.

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