Peace will come to earth when the people
have more to do with each other
and governments less.

NB: The author is Tim Hewish, who I am glad to welcome as a contributor. — Steve

We are drowning in an ocean of debt. The video above may be an American example, but it serves us well when highlighting the dire straits the British economy is in under this Labour Government.

Government isn’t any different from the average person – in that it shouldn’t act in a fiscally irresponsible manner. If you or I were to go into debt, there would be pressure heaped on us to pay back that money and we certainly couldn’t print our own ‘new’ money and call it quits.

The current Government thinks it can get away with doing simply that. By piling up huge piles of debt and flooding the economy with printed money we don’t have (Quantitative Easing) we are perilously close to a debt deficit mirroring the Greek state, which is in a State of Emergency. Dan Hannan MEP also underlines the level of the problem:

Gordon Brown will borrow more in the next two years than in the whole history of our national debt, since it was instituted in 1693.

In short, a Government must live within its means.

Labour also need to understand that Governments don’t possess money themselves. What they do have is access to tax payers’ money now and in future, so when they decide to raise taxes it shouldn’t be to service their level of debt.

I am in full agreement with Policy Exchange’s report titled: Controlling Spending and Government Deficits, which examines how Britain might best rid itself of its astronomical debt. Andrew Lilico, Policy Exchange’s Chief Economist, says:

We found that a number of countries which cut their deficits benefited from lower long term interest rates and higher confidence, leading to faster growth as a result. However, it is important that most of the deficit reduction effort should come from spending cuts not tax rises. We found that countries which tried to fix their finances mostly with tax rises have tended to fail.

This is also closely allied to the idea that Britain needs to get back to being a nation of savers. As David Cameron has stated on a number of occasions we need a culture of personal responsibility and what better place to start than being economically and fiscally responsible in your everyday transactions.

This is something Labour does not grasp in public policy, take for example, the recent revelation about their secret plan for a 10% ‘death tax’, as Mark Wallace of the Taxpayers’ Alliance said:

It is totally unfair to punish people for doing the right thing and saving up all their lives, when they are taxed on earning and saving the money in the first place.

In effect what Labour is doing is encouraging a reckless spending culture. This does not teach responsibility and if a Government can’t take a lead and act responsibility then they are not fit to govern.

Conservative election poster

Via The Conservative Party | News | Taxman planning room-by-room inspections of family homes:

Caroline Spelman has responded to new evidence that emerged today of Gordon Brown’s secret plans for council tax hikes on family homes.

A new electronic Government tax handbook, complete with audio commentary, reveals how taxmen are being trained to conduct inspections of people’s homes and tax every home improvement and room.

Caroline Spelman MP, Shadow Secretary of State for Communities & Local Government, said that Labour Ministers have been “caught red-handed” in training a “cadre of state snoopers” for a council tax revaluation in England.

“These new electronic learning tools blow out of the water any claims that the revaluation has been postponed, and proves the more tax hikes are on the cards for after the election if Gordon Brown clings to power”, she said.

Spelman added: “Families face being taxed for their sash windows and en-suite bathrooms. There is nothing that Gordon Brown won’t tax. State bureaucrats are being trained to measure up people’s homes and gardens and take intrusive photographs for a sinister Big Brother database.

These inspectors have alarming powers to enter people’s homes – and there is clear evidence that they now intend to exercise them. A Conservative Government will protect hard-working families from this home invasion; we will cancel the revaluation and abolish council tax inspectors’ right of entry.

Apparently, the ease and convenience of the online car tax system means that DVLA in 2007 took 25% more online every day than that retail leviathan, Tesco. Apparently:

In July 2007, our Electronic Vehicle Licensing (EVL) service was awarded the Orange Best Use of Technology in Business Award (Wales & West Country) at the National Business Awards.

and:

By August 2007, our Electronic Vehicle Licensing service is estimated to have saved 13,500 tonnes of CO 2 from 48m miles of journeys to the Post Office or local offices to complete an over the counter transaction, this is equivalent to 217 journeys to the moon.

So far, so super. Read more

It looks as if it is time to pronounce the last rites for pay as you drive charging.

Good. We are already taxed according to the efficiency of our cars and the distance we drive them through fuel duty. Thankfully, we may now escape being tracked wherever we go.

read more | digg story

Update: But it appears New Labour have little interest in what people want:

The crushing rejection of a congestion charging scheme by voters in Manchester has failed to halt the Government’s determination to press ahead with technology trials for national road pricing.

Within hours of the referendum results being declared, the Department for Transport said it would press ahead with development of the costly series of studies which would underpin a pay-as-you-drive scheme, which could see motorists paying up to £1.30 a mile to drive in the rush hour.

Chancellor Alistair Darling has put up the personal tax allowance by £600 – meaning anyone earning up to £40,835 will gain £120 this year.

It would have been impressive if it had appeared in the same budget that abolished the starting rate. Nevertheless, raising the allowances – permanently… – seems to me to be the fairest way to start lowering taxes.

read more | digg story