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Saturday, 3 April 2010

Business leaders back Conservative national insurance pledge | Business |‏

Very interesting:
" Its noticeable that these business leaders did not particularly object to the NI rise when it was first proposed by Labour. Only now when the Tories cynically promise to give the money back to business do they come out in support - so anyone can see that its pure self interest behind this endorsement of Osbourne's policy.

To me this smacks of political tactic by the Conservatives rather than a well considered economic policy. It runs counter to everything they have been saying over the last year about cutting the deficit hard.

As for funding the tax cut by efficiency savings - this is a joke. Savings are "estimated' and aspirational so what happens if in practice the money cant be found? The deficit will grow, risking market panic etc.

I run a business so the NI tax increase will hit me as an employer directly, but at least Labour are being honest about where the pain has to come. The Tories meanwhile are indulging in a fantasy-economics.

It may be a useful tactic to wrong-foot their political opponents in the short term, but I don't see this as a viable or responsible policy for getting the public finances back on track.

Quick reminder: All of the above are legally required to ensure that their shareholders can leach the highest return out of their passive and fleeting ownerships."

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