As the budget deficit is gradually reduced; the balance of trade deficit indicates the Tories’ still have much more work to do. But the future is looking bright and British business simply can’t afford a Labour administration.
On the 9th August 2007, BNP Paribas announced, that they could no longer be sure of the value of their assets. In one announcement, the world had changed forever. The turmoil which followed, saw the near collapse of the global banking system. Governments around the world have focused on the re-capitalisation of the banks and kick-starting lacklustre economies, with varying levels of success.
Recent economic data from the UK seem like a cause for Brits to celebrate. But that may be slightly hasty. Since 1975, Britain has generated a balance of trade surplus just once, in 1981. The balance of trade is the difference between the goods and services we have imported and those which we’ve exported. To put it another way, we haven’t paid our way in the world, in thirty-nine of the last forty years. This gap has been bridged by borrowing and the reduction savings.
And there, is the elephant in the room.
The Coalition Government, under George Osborne’s financial management, have commanded the support of the financial markets, thus preserving more of government spending than had we had a Labour Government and the inevitable greater burden of interest to bear. Employment figures are continually hitting record highs, due to the investment that the private sector has had the confidence to make, under this Chancellor. Most importantly, the budget deficit has been falling.
Despite this success, we’ve been mopping the floor, but haven’t fixed the broken pipe. The good news however, is that Boy George has called in the plumbers! The key to fixing the balance of trade deficit, is investment in the UK’s businesses so that they can export to the rest of the world. And the balance of trade deficit is finally reducing.
The Chancellor has created an environment in which businesses want to invest. Following the Coalition Government forming five years’ ago, he declared Britain “open for business”. And he’s been true to his word.
He has lowered the rate of Corporation Tax, to being the joint lowest in the G20. He has abolished the 50 pence top rate of income tax. He has established business ties across the world, most recently being the only Chancellor of a rich western economy to support the new Asian Infrastructure Investment Bank (AIIB).
It is this attitude towards business that is seeing Britain trade its way towards surplus. Only through creating a balance of trade surplus, will a budget surplus be sustainable, and the services that make Britain the best place in the world to live. There is a long road to travel down, but we’re getting there slowly.
Labour had the most prosperous 13 years in the history of the global economy, in which to sell UK PLC to the rest of the world. Instead they lost the support of the markets. The Coalition Government have regained this support, increased business with the rest of the world and are slowly fixing the problem.
If you’re a fan of the protection of liberalism, the NHS, and a bright future for the next generation, then the only sensible thing to do on the 7th May, is vote for the economy, vote for George Osborne in the Treasury, vote for the Conservative Party!
Image courtesy of CER
