U-turn if you want to

David Cameron has risked derision by abandoning plans to match Labour spending until 2010. The Tories’ argument centres around a public spending framework rooted in financial responsibility.

Bloggers have been quick to draw blood, but if the Saviour of Capitalism can change his mind, why can’t Mr Cameron?

Cameron is now on more traditionally Conservative ground, in spite of a new found aversion to tax cutting. Unsurprisingly, this has received widespread support among Tories. But is there anything in it? How can all nations of the world (apparently) support uniform tax cuts and Her Majesty’s Opposition not?

The arguement that short-term tax cuts, coupled with increased public spending will eventually lead to equal tax rises – possibly when Mr Osbourne has wrestled the keys to the treasury from Mr Darling’s cold, tenacious fingers – is a sound one. Sort of.

A tax cut of, say £20bn now will not necessary lead to an increased treasury debt of £20bn. With more money in their pockets, people will spend more and potentially generate more jobs. Jobs mean tax so the Government could potentially end up more people paying tax (albeit a little less). Just the shot in the arm the economy needs.

If this is the case – and Labour are clearly hoping it is – then why haven’t this Government been one of low taxes since the start?

It’s amazing to see the two main parties posturing for position, and how they’ve changed tunes with the times.

Cameron knows his ‘it’s going to hurt, but eventually you’ll thank us’ will prove unpopular compared to internationalista Santa Brown. He’s banking on the next general election being in 2009 and, given how desperate Brown has been to get into Blair’s slippers, it’s unlikely to be any sooner.

By then the public may come round to Dave’s hastily scribbled way of thinking. Of course, if superGord saves the world, the Tories could end up ruing such vacillating.