The Budget 2015.

Boy George Osborne made a good stab at bamboozling us all in the House of Commons on Wednesday with his plethora of statistics. When you consider what the Institute of Fiscal Studies (IFS) and other commentators say we are in for a couple of years of further belt tightening. As if the last five years since he became chancellor were not rough enough. The major difference between the two main parties is the degree of belt tightening. Both agree that its necessary to balance the books by the next parliament in May 2020. Do we have a more Keynesian approach or Milton Friedman one? This is an important issue of difference in economic policy and has been debated over the years by many eminent economists. Which is the best way of having non-inflationary growth? In my opinion its better to invest for the future in infrastructure projects, education and skills development as this will increase our national productivity which is traditionally a lagging indicator. Almost all other major economies in the G7 are better at productivity than we are. This inevitable puts us at a disadvantage as our unit costs are then higher. I go with Ed Balls as the best way for the future of the UK economy.