The conservatives are going to cut taxes and extend austerity through a smaller public sector.
The idea behind the thinking is a smaller public sector needs less public money (taxes) to fund salaries within the state.
George Osborne plans to extend the austerity measures and make the smaller state a permanent fixture. He tells us we must face up to “hard truths” and that more cuts are vital for a stable economy.
The conservatives are also stating they will cut taxes for the very lowest paid members of our society before helping people who earn the highest salaries in the UK.
The reason for the austerity is that the UK Government is still borrowing far too much, with hugh expense going out just on interest alone. It is estimated £100 billion a year is borrowed with over half that paid on servicing the loan in interest.
However there is excellent positive news, the United Kingdom is forecasted to benefit from one of the fastest economy growth rates in the developed world.