George Osborne’s Skills Make Tories Electable.

Posted on: 15/07/2013

Whatever opinion polls say today, by the time the next General Election arrives in 2015, I expect the Conservative Party to be in line for victory.

The credit for this position will rest with the Chancellor.

It was apparently a tough path to take, preaching and, in some ways, practicing austerity. However, in the end it may well have been the only horse in the race and therefore a certain winner!

The first issue for Mr Osborne when he arrived in Number 11 was to overdo the austerity speak to impress the Markets and the IMF. This worked a treat: the UK has never been lumped together will Ireland, Greece, Portugal and Spain. These four "dead men" have walked alone.

The next matter Mr Osborne had to deal with was reducing public service jobs. This he has done to a significant extent, though more is probably to come. Government, in all its guises, employs 600,000 fewer people than 5 years ago.

Coupled with a loss of jobs has been a virtual freezing of Government wages. This has in turn lead to private sector wages being constrained, making hiring staff a good investment for employers.

The result of all this? More people are working in the UK than ever before, with unemployment stable only because of incoming workers from other EC members.

Interest rates being kept low has also worked. The UK had too much "old money" earning high interest. The country could not afford that luxury. With interest rates running below inflation, the value of savings has been eroded.

Low interest rates have also helped industry to some extent and manufacturing is showing signs of a revival.

If all the above noted trends continue, by 2015 the UK economy will be in good shape:

o low inflation, in every respect
o low interest rates
o high employment
o low unemployment
o buoyant stock market

Much remains to be done, including reducing the pensions burden BUT the picture should be good and improving - just what is needed for a Conservative Victory.

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