A lot of angry Conservative voters cannot understand why their party won’t commit itself to implementing tax cuts when it wins power. They should remember that managing change in the economy is not just about money.
Moving 1 to 2 million employees out of the public sector, saving the billions wasted in the health service, tackling the billions lost to tax fraud, the billions wasted in Brown’s tax credit system, will take time.
If the public sector is to be downsized, the private sector will need to absorb the loss of employment, but to do this the private sector will need to be released from the burden of regulation, and prepared for a new phase of fast growth.
Deregulation is to the key. It will require withdrawal from the eu if it is be achieved. Without taking control back from Brussels, no government can commit to cutting tax.
In such circumstances, tax-cuts inevitably gets pushed down the list until the building blocks of rescuing Britain from its current disastrous state have been implemented. Tax cuts will be the icing on the cake. The order of procedure will inevitably be –
1. eu withdrawal.
3. moving employment out of the public sector.
4. huge growth in private sector.
5. large scale reduction in taxes.