And they’re off…
Last night’s Ask the Chancellors debate on Channel 4 has certainly signalled the start of the election… Finally!
It’s not the first time they have debated with each other on television but as the economy is now perhaps a more important issue than it has ever been at any general election since at least 1992. It was good to see the Chancellor and his shadows actually speaking policies and answering genuine questions from the public rather than churning out the same political spin every time they appear on our screens.
As a business owner, I think there were two key points made last night. Firstly, George Osborne, Alistair Darling and Vince Cable all said that they will make jobs a priority, and secondly the much talked about National Insurance Contributions.
It is clear that unemployment is a problem in Britain at the moment and with so many people deferring jobs to stay in education, the problem will only get worse unless it’s tackled properly. Vince Cable mentioned an important point – the Government can’t create employment, but it can make sure that banks lend to small/medium businesses, something that the Labour government has failed miserably on. The UK’s SMEs need the support of whatever party wins the election because they’re the ones that actually create the jobs.
George Osborne called Labour’s planned National Insurance Contribution increases the “economics of the madhouse”, and I am inclined to agree with him. By increasing staffing costs 1% many businesses out there will consider freezing recruitment, which will make things even worse. It’s a tax on jobs, at a time when we should be encouraging employers to bring in new staff. If anything we should be thinking of reducing National Insurance tax.
The Conservatives may have taken a lot of flack over the last 24 hours for the plans to reverse Mr Darling’s National Insurance increase, but I personally don’t believe that the party’s latest policy is unwise and I’m fully behind it. What many people seem to be overlooking is that employed people create more wealth for the government. The treasury receives more revenue from income tax, there is a reduction in the amount of unemployment benefits being paid out and VAT income will increase because people can spend more.
All in all, I agree with political commentator Iain Dale’s view that the next Conservative government will have enterprise at its core and that is undoubtedly a good thing for business and Britain as a whole. I’m not quite sure if the same can be said for Labour and the Liberal Democrats.
For now, the election run is on and I’m looking forward to see the would-be leaders take part in their own debates over the next few weeks.
