Forked tongue

24 November 2009 By Hugo Dixon

The UK s probable next PM had been doing an admirable job softening up the electorate for fiscal retrenchment. But now he has spoilt the effect by promising an emergency growth budget. Even if the plan has little substance, the rhetorical uturn is unfortunate.

This content is for Subscribers only

Context News

David Cameron said he would launch an emergency growth budget within 50 days of becoming UK prime minister if he wins the next election, which is expected to be next year. The leader of the opposition Conservative party also told the Confederation of British Industry that failure to tackle the country's fiscal deficit posed the greatest single risk to sustained economic recovery. He argued that dealing with the deficit wasn't an alternative to growth – the two go hand in hand.

Cameron's growth budget would include a cut in the rate of corporation tax to 25 percent. This would be funded by reducing allowances.

Email a friend

Please complete the form below.

Required fields *