Monday, October 08, 2012
Osborne's automatic stabilisers
Posted by David Smith at 04:00 PM
Category: Thoughts and responses

George Osborne's Tory conference speech was pretty dour, and did not contain much that was new. Further welfare cuts will be needed as the government takes fiscal consolidation even further into the next parliament, and there was an eye-catching, if highly controversial proposal, for workers to surrender some employment rights in return for employee shares that will be taxed at a zero CGT rate.

On policy, this was most significant: "We have never argued that you stop what economists call the automatic stabilisers operating - the lower tax receipts and extra government payments that follow if, for example, the global economy turns down." That will be the Autumn Statement defence for missed fiscal targets. The speech is here.