My Plan B? Replace bankrupt Osborne
Britain’s business community is becoming worried about Mr Osborne’s ability to take control of the maelstrom that would unleash itself if, or rather when, the euro starts to break up. And I fear his credit easing plan, like his disingenuous explanation about our non-growth, confirms that view.
Only a fool could suggest that the euro crisis has not damaged Britain’s economy; or that the implosion of the euro would not damage it further. But, equally, only a fool could suggest that other factors aren’t helping ‘kill off’ recovery here.
And one of the main factors is the Government’s own economic policy. The Chancellor’s stubborn refusal to change course, and to accept any responsibility for our stagnation, inevitably raise questions about his suitability for his post.
The credit easing plan will not work. He has offered it to avoid losing face by proposing a Plan B. And the International Monetary Fund — and, indeed, this column — have long been telling him what Plan B has to be: serious tax cuts in Britain to stimulate demand.
The problem is that Mr Osborne refuses to accept that high taxes, in particular, are stifling recovery. Unlike our beleaguered Continental partners, Britain’s exclusion from the eurozone ought to give us the flexibility to achieve growth. But the Chancellor chooses not to exploit this great advantage of ours.
Meanwhile, the gaffe-filled Budget, from which there has been a string of embarrassing U-turns, has done little to increase confidence in Mr Osborne at Westminster...... MORE
By Simon Heffer