What Cameron had to say about tax

David Cameron's speech on tax and spending is worth reading in full. It's by the far the best account of his position that he has given.

Iain Dale has this to say:

He [Cameron] doesn't actually abandon George Osborne's pledge to match Labour spending for two years, but he might just as well have done.

Well, no. He doesn't remotely do that. Quite apart from anything else this pledge was produced for an early election that didn't happen and has been rendered irrelevant by the fact that there won't be a Tory Government during the period in question.

But Iain has put his finger on an important omission from the Cameron speech - timing.

All three of the ways in which the speech suggests the Tories will cut the costs of Government will take time.

Increased efficiency and transparency might produce some real savings in a year or so. But what about the other, bigger ticket, proposals?

One is to reduce demand for government services, the second is to introduce public service reform. These are both absolutely right, but they are not going to produce immediate savings.

In fact, they will probably increase the cost of government in the short to medium term, and by that I mean probably across the whole of the first term of a Tory Government.

Now, the purpose of reform and reducing demand for government services is not tax reduction - that is a (welcome and necessary) by product. The purpose is to change the relationship between citizens and the state, to build a stronger society and to improve the quality of things like health and education.

It is important that, while the need to put state spending on a new path is not forgotten, the desire for swift tax cuts does not distort the entire programme or the way it is explained. Tax reductions are not the only thing, in fact not even the most important thing, a Tory Government will wish to achieve.

Comments

[Mark Baker]

Dan,
nowhere do I see how the Tories could improve public service efficiency. Here's how: "Systems Thinking in the Public Services" by John Seddon. £19 on Amazon ISBN 0955008182. Please read it and let the UK know about it - this method will save Billions. It is not cranky, it is based on real work in real services, but the rot comes from the top. The method needs adopting from the top. This could be Dave's magic bullet.

[burclar]

Nice article thank you