Sunday, 23 November 2008

What the world needs now...

is love, sweet love. Or a big hug.

But barring that let's hope for the following tomorrow from the idiot Scotsman and his buffoon pal Darling:
  • Positive action to support businesses. Providing a fund or the means for banks to let businesses trade through this downturn. Obviously within limits but many good businesses will go to the wall if their overdraft facilities are removed. Prevent business from dying and everyone will have a job.
  • An immediate drop in everyone's taxes. Lift the taxable benefits rate for 22% and 40%. Everyone gets more in their pocket. We choose what we do with it, whether that be reducing debt or spending it on goods and services. Either way it will be used wisely and give everyone a boost.
  • Reduce corporation tax to as low as possible, say 10-15%. Corporation tax is a double tax anyway, you tax the business, then tax the workers who live off the profits of the business. Madness.
  • Announce that all banks (or maybe just the ones that the government has a holding in) will not be turfing people out on the street through repossessions. There must be a way to keep people housed through a temporary switch to an interest only mortgage, increase in mortgage term, buy back and rent, etc. Anything to keep people housed.
  • Ban the selling of introductory mortgages or temporary low-rate mortgages. Obvious really, but you know slamming the door after the horse is bolted is still a good measure for the horses still in the stable.
  • Continue the fuel duty increase freeze.
  • Continue the stamp duty limit on house sales announced earlier this year.
  • Support the housebuilding industry by announcing new planning laws encouraging new build again in the south. Of course, this will have to have caveats, eg. only decent sized homes can be built as the country is full of rubbish 1 bedrooom flats already.
  • Announce the abolition of the pension dividend tax and watch the stock market and everyone's pension funds go straight up. The world is happy.
  • Reduce government size. Why is there an income tax and national insurance? Just have one tax. Price it correctly and do away with the double taxation and double department mentality. And the same with tax credits. How big a department is figuring out that mess?
  • The measure of inflation will revert to what it used to be. ie. include housing, fuel, and a basket of goods / services which people actually have to pay for. eg. council tax, energy, tv licence, food, etc. This will allow interest rates to be set at a level that will actively reflect the REAL level of inflation. Had this happened in the early 2000's the huge increase in debt taken on at low levels of interest would never have happened.
How is it going to be paid for? Other than the obvious immediate boost from spending, the government will also announce the immediate withdrawal from Iraq saving countless billions per month, a complete freeze on government advertising (did you know the government is the largest advertiser in the UK...where the hell are we? The Soviet Union?), and the reduction in government size as mentioned above.

What we don't want:
  • A reduction in VAT. Reducing VAT won't encourage people to spend if they have no money in their pocket anyway. Any reduction in prices will be carried out by the market to encourage people to spend. (you can see that from the recent M&S, John Lewis sales). Either get rid of it completely and allow people to
  • Any more stupid calls for banks to increase borrowing levels to 2007. Take away the threat of nationalisation from the banks and they will begin to lend to each other again. Never forget that the credit crunch began when the Northern Rock was nationalised and not sold.
  • No more bizarre big public spending. Takes far too long for any impact to be felt by workers, companies and the economy. Not to mention putting money in the wrong pockets. Anyway, the country is in a complete poo because of the vast overspending by the government and it hasn't helped anyone.
  • Don't increase tax credits. In fact get rid of them. Surely if taxation and the taxable benefit is priced correctly no-one needs a tax credit.
But that's just my two pennies worth. Fingers crossed we get some good news tomorrow.