The economy (From The Northern Echo)

The economy

9:41am Thursday 13th November 2008

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WITH the credit crunch biting hard there are two key steps the Government should take.

Firstly, we need properly costed tax cuts, putting money back into people’s pockets to boost spending in the economy and stave off repossessions and bankruptcies. These should be targeted at those middle-income families hit hardest by the present financial crisis and we must be clear how they will be paid for.

Secondly, the Government should look at helping savers.

The cuts in interest rates are good news for those with mortgages, but for people with savings, especially older people who often rely on savings income to top up the state pension, they amount to a punishment for having been careful.

Those who saved through the good times have been sensible when the Government was not and should not be penalised now.

A package to ease the impact of necessary interest rate cuts and other fiscal measures on those who rely on their savings in retirement should be considered.

By taking these two steps the Government can help lessen the pain of recession.

Sadly, it seems determined to simply borrow more and more, storing up huge problems for the future and failing to address the challenges of today.

James Wharton, Conservative Prospective Parliamentary Candidate, Stockton South.

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