This week, my favorite London Mayor challenged the Chancellor, George Osborne, a fellow Conservative, to clearly indicate, in his next budget, when he will reduce personal taxes. Well done, Boris! While I have been mostly supportive of the actions of the Conservative led coalition government, I too want a commitment to lower taxes. I'll put up with the increase in VAT, for a while, to help eliminate the budget deficit, once that is done, I want taxes brought down. Labour has been critical of the Conservatives, because of the Coalition's aggressive deficit reduction policy. While admitting that they, too, would have had to make cuts, the Labour leadership claim they would have taken twice as long to reduce the deficit.
Government spending cuts are never going to be popular amongst those voters who have grown accustomed to receiving benefits from the public treasury. However, by balancing the budget twice as fast as Labour would, it gives the coalition the opportunity to cut taxes before the next national election. Tax cuts are popular with voters who benefit from them, plus will help improve economic activity. The Conservatives strategy will allow them to weather the bad will created by doing the tough things to balance the budget, while leaving a couple of years fro them to rebuild good will, by tax reduction, in time for the next election. This is quite a clever long-term play and one, so far, that Labour hasn't been clever enough to perceive.
By challenging Osborne, Boris Johnson has placed himself in a position to ride the coming wave. It is rumored he has national ambitions and may, one day, make a run for the Conservative Party leadership. Some speculate that could be the reason for his tax statements, this week. I hope he stays Mayor, for the foreseeable future, so we don't end up with that nasty Red Ken back in. Calling for tax reduction makes up for his silly Thames Estuary Airport advocacy, last week. Boris, more tax cutting, less goofy new airports, please.
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