News from British and Canadian Conservatives

Sunday, June 10, 2007

Rolling back New Labour's bureaucracy

George Osborne, Shadow Chancellor of the Exchequer, will be launching an attack on red tape in British business, according to the Sunday Telegraph. On Tuesday, he will announce the moves in a speech. Grant Thornton, the accountants, have been hired to advise the party on measures to free businesses from government interference. One of the key aims will be to align the two forms of income tax payable in the UK - Income Tax and National Insurance.

The move is most welcome and a long overdue victory for common sense.. The biggest success of the Thatcher and Major governments was in making Britain into a place to do business - something that could not have been said in the dark days of the 3 day week and the Unions' beer and sadwiches at Number 10 with Callaghan and Wilson. However, 10 years of "New" Labour has greatly diminished Britain's position as nation of entrepreneurs. Labour's apparent conversion to the capitalist cause has focused on the Big Businesses, expecially those prepared to make big donations to Labour coffers, like Anderson. Small independent firms, be they traditional corner shops or new technology based start ups have been squeezed by these policies. We've seen our high streets' independent businesses decimated, and IR35 has set back the development of our IT industry by a generation. Small firms were never able to deal with the levels of bureacracy heaped upon them. Now, even larger firms are feeling the pinch. As other countries, particularly the accession countries of Eastern Europe, have reduced their levels of bureaucracy and Britain has increased red tape, international firms in the global market place are choosing to set up in more competitive countries.

It's imperative that the next Conservative government nips this catastrophic state of affairs in the bud before we return to the disasters of IMF loans and forcef fire sales of assets which we saw at the end of the last Labour government in the 1970s.

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