{"id":37511,"date":"2014-01-06T10:27:17","date_gmt":"2014-01-06T10:27:17","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=6204fdb5626eeb0691c3122eb711b3f6"},"modified":"2014-01-06T10:27:17","modified_gmt":"2014-01-06T10:27:17","slug":"speech-new-year-economy-speech-by-the-chancellor-of-the-exchequer","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=37511","title":{"rendered":"Speech: New Year economy speech by the Chancellor of the Exchequer"},"content":{"rendered":"
\n

Thank you for inviting me to speak to you today here at Sertec.<\/p>\n

I\u2019m here because you\u2019re a great manufacturing company, of the kind we need to see many more of in this country.<\/p>\n

You make parts for British cars that are exported all around the world.<\/p>\n

When we hear on the news that our economy is recovering, people wonder what it means for them. <\/p>\n

For some it feels abstract, remote.<\/p>\n

But here there\u2019s nothing abstract about the 200 new employees this company has created in the last year.<\/p>\n

Or the 400 additional people that Sertec has announced today it will be taking on in the next four years.<\/p>\n

That\u2019s a vote of confidence in the workforce here.<\/p>\n

It\u2019s a vote of confidence in the Midlands.<\/p>\n

It\u2019s also a vote of confidence in the economic plan that is working for Britain.<\/p>\n

This factory is a good place to talk about that plan. <\/p>\n

For you know more than most that the world does not owe Britain a living.<\/p>\n

Car manufacturing is fiercely competitive. <\/p>\n

Components can be sourced from around the world. <\/p>\n

You know that there are hundreds of companies in dozens of countries that would like to be manufacturing the products you make here.<\/p>\n

And it\u2019s only because of your skill and your professional approach that the work comes here \u2013 here to this company.<\/p>\n

If the quality slipped, or the costs went up or the company was badly run \u2013 then the jobs would go elsewhere.<\/p>\n

What is true of this company is true of our country.<\/p>\n

It\u2019s because the rest of the world sees that Britain is a country where we\u2019re now back in control of our destiny, a country where we\u2019re supporting business, that jobs \u2013 like the ones here today – are being created across our country.<\/p>\n

Over one million new jobs.<\/p>\n

But if our country is badly run, if the finances are in a mess, and costs go up, and businesses don\u2019t feel welcome, then jobs would quickly disappear from Britain again.<\/p>\n

Our country was in a real mess a few years ago \u2013 more so than almost any other major country in the world.<\/p>\n

Hundreds of thousands of people lost their jobs.<\/p>\n

Millions of families like yours have seen their incomes squeezed. <\/p>\n

Britain was made a lot poorer.<\/p>\n

That\u2019s the terrible price people totally unconnected with politics and politicians pay when you get the wrong economic policy. <\/p>\n

It\u2019s why getting the right plan \u2013 and holding to it \u2013 is so important.<\/p>\n

We\u2019ve got the right plan now. <\/p>\n

It\u2019s a long term plan for turning our country around. <\/p>\n

I\u2019ve never promised it was going to be easy. <\/p>\n

I went out of my way to say the opposite \u2013 and be open with you about the difficult sacrifices we had to make. <\/p>\n

And like the success of this company, it\u2019s been a team effort \u2013 with a lot of hard work.<\/p>\n

Now that team effort is paying off.<\/p>\n

The plan is working.<\/p>\n

For the first time in a long time, there\u2019s a real sense that Britain is on the rise.<\/p>\n

Jobs are being created. <\/p>\n

The deficit is coming down.<\/p>\n

That brings its own risks. <\/p>\n

As we start the New Year, I want to warn you about a dangerous new complacency around at the moment.<\/p>\n

You hear some talking as if the hard part of the job is done \u2013 and we can go back to the bad old habits.<\/p>\n

But beware those who come along this year and promise you easy answers, no more sacrifices, just more spending on this and more spending on that, all paid for by more borrowing.<\/p>\n

For the truth is there are still plenty of risks out there.<\/p>\n

Our biggest trading partner, the Eurozone, is still weak. <\/p>\n

And there are fears about slowing growth in the emerging economies further afield. <\/p>\n

Here at home, the banking system is still not working as we need it to, so we\u2019re still fixing it.<\/p>\n

We have to do even more to encourage the exports and investment and saving our economy needs for a responsible recovery.<\/p>\n

Above all, we\u2019ve still got a huge amount to do to reduce the deficit and get our debts falling.<\/p>\n

And it\u2019s worth remembering, as the festive season comes to an end, that our own independent Office for Budget Responsibility, is predicting a slowing of quarterly GDP growth this year.<\/p>\n

So it\u2019s far too soon to say: job done.<\/p>\n

It\u2019s not even half done.<\/p>\n

That\u2019s why 2014 is the year of hard truths. <\/p>\n

The year when Britain faces a choice.<\/p>\n

Do we say: the worst is over; back we go to our bad habits of borrowing and spending and living beyond our means \u2013 and let the next generation pay the bill?<\/p>\n

Or do we say to ourselves: yes, because of our plan, things are getting better.<\/p>\n

But there is still a long way to go \u2013 and there are big, underlying problems we have to fix in our economy.<\/p>\n

More repairs. <\/p>\n

More cuts. <\/p>\n

More difficult decisions.<\/p>\n

That\u2019s the choice in 2014: to go on working through a plan that is delivering for Britain, putting us back in control of our destiny with the security and peace of mind that brings;<\/p>\n

or squander what we\u2019ve achieved and go back to economic ruin.<\/p>\n

Ultimately it\u2019s your choice \u2013 a choice for the British people.<\/p>\n

Our long term economic plan has five key parts to it.<\/p>\n

The first is to go on reducing the deficit so we deal with our debts \u2013 because that\u2019s the way to safeguard our economy for the long term and keep mortgage rates low. <\/p>\n

If 2014 is a year of hard truths for our country, then it starts with this one: Britain should never return to the levels of spending of the last government.<\/p>\n

We\u2019d either have to return borrowing to the dangerous levels that threatened our stability, or we\u2019d have to raise taxes so much we\u2019d put our country out of business. <\/p>\n

Government is going to have to be permanently smaller \u2013 and so too is the welfare system. <\/p>\n

When I took this job, Britain was borrowing more than \u00a3400 million every single day to pay for government spending.<\/p>\n

But as a result of the painful cuts we\u2019ve made, the deficit is down by a third and we\u2019re borrowing nearly \u00a33000 less for every one of you and for every family in the country.<\/p>\n

That\u2019s the good news.<\/p>\n

The bad news is: there\u2019s still a long way to go.<\/p>\n

We\u2019re borrowing around \u00a3100 billion a year \u2013 and paying half that money a year in interest just to service our debts.<\/p>\n

We\u2019ve got to make more cuts.<\/p>\n

\u00a317 billion this coming year.<\/p>\n

\u00a320 billion next year.<\/p>\n

And over \u00a325 billion further across the two years after.<\/p>\n

That\u2019s more than \u00a360 billion in total.<\/p>\n

Some say they\u2019d deal with the deficit, but they shy away from committing to numbers.
\nSo this year, we\u2019re going to ask Parliament to vote on these plans. <\/p>\n

I want our country\u2019s commitment to economic stability entrenched.<\/p>\n

Even after we\u2019ve reduced the amount we borrow each year, that still leaves us with a high debt from all the past borrowing.<\/p>\n

That debt leaves Britain vulnerable \u2013 and I want to make us safe.<\/p>\n

So I\u2019m going to ask Parliament to vote too this year on a new charter for budget responsibility that will commit us to reducing those debts.<\/p>\n

It means not spending again when borrowing falls, including using surpluses in good years to reduce debt \u2013 so in future, we fix the roof when the sun is shining.<\/p>\n

These votes will force Parliament to make a choice and confront the truth.<\/p>\n

We also need to confront truths about the cost of living.<\/p>\n

I know it has been hard for families since the crash.<\/p>\n

It is not a case of not understanding these difficulties.<\/p>\n

It\u2019s a case of being honest about why things are difficult and what we can actually do to make things better.<\/p>\n

The truth is that Britain is poorer because of the great recession that happened, and families feel that.<\/p>\n

As the economy recovers, so too will family finances.<\/p>\n

People\u2019s earnings are expected to go up. <\/p>\n

Inflation has fallen, and that helps. <\/p>\n

So too does the government\u2019s action to cut the costs we impose on your family gas and electricity bills.<\/p>\n

But there\u2019s no point pretending that there\u2019s some magic wand a Chancellor can wave to make the whole country feel richer than it actually is \u2013 or that I can control the global oil price from an office in Whitehall.<\/p>\n

It\u2019s simply not being straight with people. <\/p>\n

The only way to improve people\u2019s living standards for the long term is for Britain to earn its way in the world and create more, better jobs \u2013 just as this company is doing every day.<\/p>\n

And if government wants to find a direct way to put money into people\u2019s pockets, you do that by permanently cutting people\u2019s taxes by permanently cutting the spending those taxes pay for. <\/p>\n

That\u2019s what the second part of our long term plan is about: cutting income taxes and freezing fuel duty to help hardworking people be more financially secure.<\/p>\n

This April, you\u2019ll see what that means in your wage packet.<\/p>\n

That\u2019s when we increase the tax-free allowance to \u00a310,000 – and it means in total an extra \u00a360 or so a month for the typical worker. <\/p>\n

I\u2019m also freezing fuel duty again this year, so your car will cost \u00a311 less to fill up than it would have done.<\/p>\n

And from next year, there will be tax free childcare – to help working families. <\/p>\n

Making tax promises like these is meaningless unless you\u2019re prepared to say how you\u2019d pay for them.<\/p>\n

We\u2019ve paid for every single pound\u2019s worth of these tax cuts \u2013 all \u00a350 billion in total \u2013 without a single penny of extra borrowing because we\u2019ve made the savings needed in the cost of government. <\/p>\n

It\u2019s all about fairness and whose side you\u2019re on.<\/p>\n

And while no sensible Chancellor ever rules out tax changes, our whole economic plan can be delivered by reducing spending further not by increasing taxes.<\/p>\n

That\u2019s how you create a country where people who work hard and want to get on are supported.<\/p>\n

You all know that there is no better financial security than having a job \u2013 and so that\u2019s the third part of our plan: creating more jobs by backing small business and enterprise with better infrastructure and lower jobs taxes.<\/p>\n

Thanks to this plan, there are now a record number of people in work in our country.<\/p>\n

But as you know here at Sertec, the competition is fierce and the work can go anywhere in the world.<\/p>\n

If we are going to go on being a country where companies grow, invest and want to take on new people, then we\u2019ve got to make ourselves the best place in the world to do business.<\/p>\n

That\u2019s why I\u2019m cutting business taxes, introducing an employment allowance that will benefit small firms most.<\/p>\n

It\u2019s why I\u2019m helping with high street business rates and now I\u2019m abolishing jobs tax altogether for those aged under 21.<\/p>\n

These are all steps we\u2019re taking as part of our plan to create more jobs in Britain.<\/p>\n

Others say they\u2019d do the opposite.<\/p>\n

They say businesses should pay more with a higher corporate tax rate. <\/p>\n

I think that would send a disastrous signal to the rest of the world about the direction Britain was heading in. <\/p>\n

It would cost jobs and investment. <\/p>\n

It would be a massive own-goal for Britain.<\/p>\n

It would also be a mistake if we didn\u2019t invest in future infrastructure that our country needs to be prosperous.<\/p>\n

Like the new power plants that keep factories like this going, and the roads and railways and broadband that carry our goods and services.<\/p>\n

That\u2019s why we\u2019ve made spending on these things the priority when money is tight.<\/p>\n

It\u2019s why I say we need more homes, and to support families who dream of owning a home with our Help to Buy.<\/p>\n

And it\u2019s why we\u2019re prepared to take controversial decisions on long term things like high speed rail, and the search for cheaper gas in shale.<\/p>\n

Because I don\u2019t want to condemn our country to ageing infrastructure and expensive energy when so many others in the world are heading in the direction of the future.<\/p>\n

A strong economy and a fair economy go hand in hand.<\/p>\n

We have to make sure the recovery supports those who work hard and play by the rules.<\/p>\n

That\u2019s why the fourth part of our economic plan is about reducing immigration and capping welfare.<\/p>\n

Migration, when it\u2019s controlled, is an important part of a successful economy.<\/p>\n

But uncontrolled immigration, of the kind we saw over the last decade, brings pressures on public services and leads to abuse of our welfare system.<\/p>\n

That\u2019s why we\u2019ve tightened the rules so people can\u2019t just come to this country to claim benefits – and it\u2019s why for the first time we\u2019ve introduced an immigration cap. <\/p>\n

That new fairness applies across our welfare system too.<\/p>\n

Britain is a proud country that does, and in my view always should, protect the most vulnerable through our welfare system. <\/p>\n

But it should not be a welfare system that offers up benefits as a lifestyle choice.<\/p>\n

We need to be fair to those who need our welfare system \u2013 and fair to those like you who pay their taxes for that system.<\/p>\n

Benefits are now capped, so no family gets more for being out of work than the average family gets from being in work.<\/p>\n

And with our new Universal Credit, we\u2019re going to make sure it always pays to work.<\/p>\n

In 2014, we\u2019re bringing in more changes.<\/p>\n

The long term unemployed are no longer going to get something for nothing. <\/p>\n

They\u2019ll have to put back into their community, including compulsory work, with our Help to Work.<\/p>\n

And this year, we will for the first time set a cap on the overall welfare budget so it can be properly controlled. <\/p>\n

State pensions won\u2019t be included in that cap. <\/p>\n

As the Prime Minister said this weekend, we are committed to giving everyone who\u2019s worked hard and saved though their lives the generous state pension they deserve. <\/p>\n

And the country can only afford to do so because of the difficult decision we\u2019ve taken on increasing the pension age as the population lives longer.<\/p>\n

That saves many billions of pounds for taxpayers; and we need to save billions more from the rest of the welfare budget.<\/p>\n

When you think about the competition this factory faces from around the globe, and the kind of world your children are going to grow up in, wouldn\u2019t it make more sense that your government was spending your money on things like schools and science and a better NHS than more welfare?<\/p>\n

So here\u2019s another hard truth: welfare cannot be protected from further substantial cuts.<\/p>\n

I can tell you today that on the Treasury\u2019s current forecasts, \u00a312 billion of further welfare cuts are needed in the first two years of next Parliament.<\/p>\n

That\u2019s how to reduce the deficit without even faster cuts to government departments, or big tax rises on people.<\/p>\n

So when you see people on the telly who say that welfare can\u2019t be cut anymore – or, even worse, promising they will reverse the changes we\u2019ve already made and increase housing benefit – ask yourself this: <\/p>\n

what public services would they would cut instead? <\/p>\n

what taxes they would put up in their place? <\/p>\n

or would they borrow and spend more, and risk our country\u2019s economic stability again?<\/p>\n

This is what I mean when I say Britain has a choice. <\/p>\n

The truth is there are no easy options here, and if we are to fix our country\u2019s problems, and not leave our debts to our children to pay off, then cutting the welfare bill further is the kind of decision we need to make. <\/p>\n

The final part of our economic plan is all about delivering the best schools and skills for young people so the next generation can succeed in the global race.<\/p>\n

I want the new jobs being advertised right here at this company to go to local kids coming out of the schools and colleges here. <\/p>\n

But that\u2019s only going to happen if standards are high enough.<\/p>\n

One of the most depressing discoveries of 2013 was that over the last decade Britain\u2019s education fell even further behind other countries in the world.<\/p>\n

Reversing that is essential.<\/p>\n

That\u2019s why were turning more and more schools into academies, and creating new free schools. <\/p>\n

It\u2019s why we insist on exam standards that are more rigorous.<\/p>\n

We\u2019re also creating many more apprenticeships, so more young adults get a chance to earn and learn in companies like this. <\/p>\n

And this autumn we\u2019ll start lifting the cap we impose on the number of university students.<\/p>\n

If Britain is going to compete in the global race to the top, there should be no limits on aspirations \u2013 we need all our young people to develop their talents to the maximum.<\/p>\n

So that\u2019s our long term economic plan \u2013 with 5 key points.<\/p>\n

Cutting the deficit. <\/p>\n

Reducing taxes for hardworking people. <\/p>\n

Creating more jobs by backing business. <\/p>\n

Capping immigration and welfare. <\/p>\n

Delivering the best schools and skills.<\/p>\n

It is a plan that is working. <\/p>\n

But growing the economy, helping businesses succeed, reducing the deficit: these are not an end in themselves \u2013 they are a means to an end.<\/p>\n

So let me set out clearly what that end is, what our long term economic plan is really for \u2013 what the motivation behind it is. <\/p>\n

Our plan is about more than rescuing our economy from the brink of collapse.<\/p>\n

It\u2019s about instilling a new belief in Britain.<\/p>\n

So we can all live in a country that is in control of its own destiny in this world.<\/p>\n

A country where we can have the peace of mind that comes with knowing you can provide for your family.<\/p>\n

A country that offers security and a better life for the next generation.<\/p>\n

Peace of mind. <\/p>\n

Security. <\/p>\n

A better life for our children. <\/p>\n

Controlling our own destiny. <\/p>\n

Our economic plan is for the long term.<\/p>\n

And just as there are no short-cuts to the work you do here, there\u2019s no short-cut to that economic security for Britain. <\/p>\n

Thanks to the hard work of the British people, our economy is on the mend \u2013 and our country is doing better.<\/p>\n

But what was hard won, can be easily lost.<\/p>\n

So we have a choice in 2014.<\/p>\n

We can give up, go back to square one, risk everything.<\/p>\n

Or we can confront the hard truth that more difficult decisions are needed \u2013 and work through the plan that is turning Britain around.<\/p>\n

I say: let\u2019s finish the job.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

In a keynote speech the Chancellor explains the five components of the government’s long-term economic plan.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/37511"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37511"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/37511\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}