An Obvious Economic Announcement...

Never one to point out the obvious at rather a late stage in proceedings, Prime Minister David Cameron took to the podium at the CBI conference to announce that the current economic climate and crisis in the Eurozone were having a “chilling effect” on the UK economy.

Now, this fact was probably widely re-acknowledged around about six months ago; the world having watched continued Greek financial woes and the growth of Italian instability. Add to the melting pot the downgrading of American credit and the shrinking of forecasts for growth and most people were under no illusions to the state of the economy.

However, we must certainly thank the Prime Minister for pointing out these obvious facts that are supposed to be being addressed firmly by his government: alas, apparently to no avail.

He blamed the current lack of growth on the continuous string of bad news about economy matters, but did not announce any ground breaking scheme himself. Rather, this task is dutifully left to burden George Osborne’s shoulders next week.

Whilst the PM is under a great deal of pressure to reverse the position of Britain amidst these financial troubles, surely highlighting the problems and not proffering any solution himself is but counter-productive. 

Although some may say truth is the best tactic, these facts were already wide-held public views: their reaffirmation by Cameron only serves to further down-hearten British workers, contractors and entrepreneurs and shake the foundations of faith in both commerce and the government.

Mr Cameron also told the conference: "Everyone agrees now that in the past Britain's economy had become lopsided: too dependent on debt, on consumption, on financial services.” Unfortunately, the continued upholding of a policy of cuts is doing nothing to reverse the trend, but rather stagnate the economy.

This concept that it takes money to make money and debt must preceed profit only just now appears to be clicking as the PM is set to detail housing schemes, but the projects are somewhat received only to mild appreciation: the economy cannot take much benefit from such a slow burning enterprise.

Perhaps, rather than continuing to be a staunch coat and continuing to plug policies that are not working, Cameron and his faithful Clegg should consider redressing their approach and apologising. It could be the making of a great economic boom in the long run. New tactics worked for Roosevelt. Was no one making notes? Did no one pay attention in history class?! Would his approach hurt the support of the Tory party too much and appear like socialism? Probably, and that why politics no longer involves the public right; it’s just a game of opposition policies…

Miliband's War.

Labour once again proclaims itself new as the annual party conference gets underway in Liverpool.

In the largest speech of his leadership so far, Ed Miliband announced that there should be action taken against those companies who could be described as “predatory” and “asset stripping”. Mr Miliband outlined his latest vision for a greater Britain, by rewarding smaller companies and “grafters”, whilst also tackling a great number of issues either side-stepped or taken in the wrong direction by the current coalition.

Being elected leader of the party just over a year ago, Miliband is having to make a name for himself and trying to re-establish trust for his party. Although there are no explicitly new policies or announcements, his interview prior to the conference with Andrew Marr suggested that there need be a new stance.

Of course, this is to appear as contrary to the Tory opposition as possible: support for the coalition recently having plummeted according to some polls, particularly for Nick Clegg’s party.

Naturally, as Nick Robinson pointed out, opposition leaders - whether Labour or Tory - declare that they are on the side of hard working people who do the right thing.

In this way, Ed Miliband is pushing ahead with a revival of responsibility.

Almost as if the heralding of a new period of enfranchisement, the Labour leader introduced the initiative fully at today’s conference.

From companies to average citizens, the need to act for one’s community has never been clearer or on such an impressive scale of undertaking. Miliband has argued that companies who offer long term reinvestment and training should have tax rewards: and pointed to Rolls Royce as an example of such an enterprise that should be encouraged.

In addition, the speaker added that “Our first duty should be to help the person who shows responsibility.” He followed up on this by suggesting that those who helped out in their community should reap the rewards through such things as jumping up priority in the housing chain. There need be an introduction of the something for something ideal.

However, many are dissatisfied with this brash approach, insinuating that it was the Labour party themselves that adopted a doctrine of a “something for nothing” ideology and that mantel has continued to spread and debilitate Britons past their spell in Westminster power.

Whilst the speech appears well placed following the backdrop of riots and banking crises, there is belief that the Tory party only served as powderkeg to problems that had been bubbling under Labour administration.

A ComRes poll in the Independent on Tuesday showed 37% of the 1,000 voters questioned said they backed the Conservatives, against 36% for Labour and 12% for the Liberal Democrats. Just 24% agreed that Mr Miliband was a credible prime minister-in-waiting, against 57% who said he was not.

Although Miliband’s speech pledges Labour party to remain the politics of the people and to never again to advantage of the system, Baroness Warsi claims Mr Miliband is not able to promise such.

The Conservative co-chair brought forward the idea that Labour had latterly strangled the small business owners in 2008 through 2010 in particular. Furthermore, the Baroness proved poignant in the statement that "Ed Miliband can't deliver on these promises because his party left the country on the brink of bankruptcy. This is opportunistic rhetoric from a weak leader."

Meanwhile, Ed Balls has unveiled a five point plan for dealing with debt.

The scheme, which he would see introduced following the next elections, would include a VAT cut to encourage growth (similar to schemes trailed by Darling), tax breaks for small firms (not exactly reflected on having economic responsibility) and reinvesting bank bonus taxes in the community.

Whilst Mr Balls acceded to Labour’s previous mistakes, he described the current state of the economy, “the worst in his lifetime” and pointed to current Chancellor, George Osborne, as having the wrong “prescription”. He argued that having a growth plan, rather than a plan of spending cuts, could quickly put a stopper in the vicious circle of deficit and “secure an economic future”.

However, the Labour party has once again affirmed that great swathes of the Tory changes would continue even if they are revoted to power. In this sense, Labour is hiding behind the curtains on a great many of its policies: letting other people carry out the changes and then afterwards showing sympathy without action.

Should the party truly wish to get into power once more, they need stick firm to their principles and act on changes that would not have been introduced. Otherwise, confidence, as well as the economy, will not grow in any forecast. A war of principles vs popularity is underway.