The UK national debt is currently running in excess of £900 billion and is forecast to soar to a shocking £1.1 trillion by 2012.
That means over £15,000 for every man, woman and child in the UK.
In turn this will cost every household £2,000 this year, just to cover the interest payments.
As any shopkeeper on Grantham High Street will tell you: you can’t spend what you don’t earn.
This debt is a millstone around our neck. With the UK economy growing slowly and the situation in Europe and North America deteriorating, it’s time for a real solution.
Every penny raised in VAT goes to the European Union, senior public sector pay deals continue to rise and the prevalence of our quango culture shows no sign of being curtailed.
Clearly we need to cut costs and promote growth. Raising tax will fail on two levels: it not only discourages growth but also has a crushing effect on tax revenue.
It should be noted that the largest revenue raised in the UK was at a time of low taxation during the 1980s.
A Grantham economic enterprise zone would help our local businesses become (or remain) competitive by providing tax incentives and reducing bureaucracy.
Less planning ‘red tape’ would also give local employers the opportunity to expand more easily, whilst business rates would be reduced.
Super fast internet access would greatly improve conditions for current businesses and further improve employment opportunities by attracting new companies to the area.
For Grantham as a whole the benefits of a low tax regime are very clear: more businesses, more jobs, more choice and less stifling bureaucracy. As the Institute for Economic Affairs noted, the time has come to ‘sharpen our axes and cut the taxes.’
by Richard Davies