Osborne responds – Part II

Here are George Osborne's answers to the last five questions put forward by CoffeeHousers.  For Part I click here

GS London

"What are the realistic possibilities of a flat-rate taxation system? If not, please explain why not, and, failing that, would a conservative government make effort to drastically reduce the complexity in current taxation?"

 There are important lessons we can learn from the flat tax. Under Labour, Britain's tax code has more than doubled in length, adding to the administrative burden for businesses and individuals across Britain. That's why I have set out a long-term commitment to make our tax system simpler and fairer, and asked Lord Howe to develop detailed proposals to change the way tax law is made and bring an end to Labour's stealth taxes. However, when it comes to a pure flat tax, I'm not convinced that this is the right model for a mature economy. As Lord Forsyth's Tax Reform Commission put it: "A flat tax is the right direction but not the right solution for the UK."

Damon

"McCain or Obama?"

Good question. I've met John McCain on many occasions and he is very impressive. I'm hoping to meet with Barack Obama during his visit to the UK this week. From what I've seen, each of them would make a strong President.

gstewart

"It looks as though the first term (at least) of the next Conservative Government will be spent pushing through a major reconstruction and rescue of the British economy. Can you outline some of the first steps you'll take."

You're right that Gordon Brown has mismanaged the economy, and the next government will have to get the economy and the public finances back on track. The Conservative Economic Recovery Plan that David Cameron and I have outlined is designed to do exactly that. This includes immediate action to help employees, homeowners, savers and families - including abolishing stamp duty for first time buyers, introducing a Fair Fuel Stabiliser, protecting savings of up to £50,000 in the event of a bank collapse, and reforming insolvency law to prevent fundamentally sound companies from going to the wall. And in the longer term, we've set out plans to bring down the cost of living, sort out our public finances and spur economic growth. If you'd like to know more, our most recent speech on the Conservative Economic Recovery Plan can be found here: http://www.conservatives.com/tile.do?def=news.story.page&obj_id=145737&speeches=1

 M. onal

"In your opinion, what are the 5 cardinal mistakes Labour has made with the economy since coming to power?"

Only five? Well, they'd have to include: wrecking the public finances by failing to put money aside in the good years; hiking up taxes and regulation so that we have become less competitive; all but destroying our occupational pension system; wasting billions of pounds on bureaucracy, welfare and unreformed public services; failing to give Britain the education system we need if we are going to prosper in the age of the globalised knowledge economy.

Jonathan T

"George,

What do you plan to do regarding unfunded public sector pensions?

Will you remove the defined benefit provision for current public sector employees and replace with defined contribution, as in the majority of the private sector?

Will you establish a fund to cover the liabilities of public sector pension provision, rather than relying on future taxpayers? (Perhaps put key infrastructure into such a fund and charge for its use?)

Best of luck in sorting out the fiscal shambles you will inherit in May 2010!"

Thanks Jonathan. Labour's shortsighted decisions on public sector pensions have put the public finances at risk, and estimates suggest the total liabilities could be as high as a trillion pounds. That's why we have made it clear on countless occasions that a Conservative government will not be bound by Labour's flawed deal on public sector pensions.