View more on these topics

PBR: Tories slam plan as “greatest failure of public policy in a generation”

Conservative shadow Chancellor George Osborne has slammed the Chancellor’s pre-Budget report as “the greatest failure of public policy in a generation”.

He said it proves that the Prime Minister’s claim to have put an end to the era of boom and bust was “one of the greatest deceits” ever told to the British public.

He said the Chancellor was going to double national debt to £1trn and was only offering tax breaks at Christmas in exchange for tax increases for life.

He said the pre-Budget report was less of a tax bombshell than a “precision guided missile” timed to collide with the country’s economic recovery and dubbed it “the greatest failure of public policy for a generation”.

Osborne accused the Chancellor of designing a budget based on the political cycle rather than the economic cycle by storing up tax hikes for the future.

He warned that the £20bn fiscal boost by the Chancellor would be followed by £40bn of tax hikes.

He said the Government’s borrowing figures “are on a scale never before heard in this house” and said the £78bn of borrowing this year is almost double what Alistair Darling forecast eight months ago.

Osborne said the 0.5 per cent rise in National Insurance was confirmation of the final truth:

He said: “In the end all Labour chancellors run out of money and all Labour Government’s run the country to the edge of bankruptcy.

“Stability has gone out of the window. Prudence is dead.”

Liberal Democrat shadow chancellor Vince Cable said the temporary cut in VAT would not be enough to stimulate the economy.

He also said it would reward wealthier people who are the “big spenders”.


Corporate climbers

What a depressing time – falling markets, layoffs everywhere and a continuous diet of gloomy news. All this will lead to further falls in interest rates and I expect another cut in December with more to come later. I would not be surprised to see rates below 2 per cent by February.

Family first

Stepping down as PFS president was bitter-sweet but I look forward to supporting Paul Lothian during his term for what will be a defining year for our profession.

The missing middle

It appears that our economic future relies on the less well-off spending us out of recession.

Life begins at…

By Fiona Holmes, proposition communications manager Having reached a certain age (it’s the new 40 by the way), I’m having to come to terms with the fact that my peers and I aren’t as immune from illness or death as we’d like to think. That’s the problem with 30 being the new 20 and 40 […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm