Getting out of the Recession

DC
13 Feb 2010

The collapse of confidence in the Greek Government's debts has spread to Spain and now the stock markets around the world are tumbling threatening the double dip recession that Vince Cable forecast. What are the policies that will guide us through this economic turmoil? Certainly not a rush to cuts in government spending, and a freeze on public sector wages will hurt the majority who already work for the community on low wages. Cutting jobs and putting people on the dole will reduce tax revenue while adding to government debt from increased benefits.

So a more practical approach is necessary. Fairer taxes is one way forward, and a local income tax based on people's income will mean those on a low income paying less tax, and claiming less council tax benefit. Their money will go further, the poverty trap will reduce, and as long as this is tax neutral it will not increase cost taxpayers overall tax burden, but government payouts would fall.

If we raise income tax allowances up to £10,000 we will also reduce the need for benefit payments. Too often we tax the poor, only to pay it back in benefits and employ lots of civil servants to administer a system that has become far too complex. Let's start making things simpler so that our elderly residents don't have to work through forty pages of pension credit forms, give up, and then not get what they need!

We need to create jobs and we can do that by setting out to insulate our schools and hospitals. Not only will this create jobs it will lower the running costs of vital public services saving money for generations into the future. Housing Associations regularly produce houses that have high specification and low heating costs. Why don't private developers do the same? Because they don't have to.

We can change this at no cost to the taxpayer, and no it won't dramatically increase house prices. We have the technology to build houses that generate more electricity than they use. This would end fuel poverty! Our houses are expensive because of land prices, and section local authority charges can add around £20,000 to the price of a house! Our Councillors, planning policies, and officers national and local are just too timid! Renewable energy in housing will pay for itself over the lifetime of housing, and reduce the need for pylons and nuclear power stations.

We can move out of this recession with positive action, and by electing representatives bold enough to get on with what is needed.

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