Let’s start with an irrefutable FACT: Labour governments have always trashed the British economy. From Attlee’s sterling crisis through Wilson’s devaluation and Brown’s huge 7% recession. And they always will trash the economy because their dogma comes first which means that they ignore economic reality.
The rate of interest that you pay on money that you borrow is based on how much the government has to pay to borrow their money. If the government is trusted by the world’s big lenders and is doing a good job they pay a lower rate and so do you. If the government is doing a bad job financially then they have to pay more interest in order to borrow money. Which in turn bumps up consumer interest rates. So a good place to look for interest rate comparisons is government 10 year bonds, they clearly show the financial competence of the government:
Switzerland minus 0.15% (yep, you have to pay to lend the Swiss government money)
Our interest rate is amazingly low when you consider our immense national debt that was caused by Gordon Brown’s out of control spending spree. If lenders lost confidence with our ability to manage this debt properly (as would definitely happen with Ed Balls as chancellor) then interest rates would go up. The maths is simple, for every 1% rise on £100K of debt you personally will have to find an extra £1K a year. If you have a £200K mortgage and rates go up by 2% then you need to find another £4K a year. About £80 a week, every week. And they could go up a lot more. It isn’t just finding the money, houses will become a lot less affordable so their value will collapse. Many people will be in negative equity, paying out huge sums on a loan bigger than their house is worth.
Most cars these days are bought on some sort of finance. You see lots of silver Audis and BMWs in the Tesco car park because interest rates are so low, which makes the monthly payment very small. Get Labour in and when you get a new company lease car it will be a huge downsize. A Skoda Fabia instead of a BMW 5 series. And if you lease yourself you will end up looking for a secondhand Nissan Micra.
Also everything that you buy will become more expensive. This is because the businesses that supply your goods and services will have to pay a lot more interest on the money they have borrowed in order to supply you with those goods and services.
And your tax will go up. Gordon Brown promised not to put up income tax, just as Balls and Miliband are promising now. So Gordon Brown introduced lots and lots of new stealth taxes instead, he stole £100 billion from our pensions, he sold our gold at a record low price and, in the end he did put up income tax, getting rid of the 10p band and slapping 50% tax on high achievers. And despite taxing us like crazy Brown was also borrowing like crazy because his spending was completely out of control. As always happens with Labour governments.
Amazingly whilst Labour are promising massive increases in stupid spending on things like reducing tuition fees (a move which harms the poor more than the rich) they are also promising to put in place envy taxes that will reduce government income! Their “Mansion Tax” will raise little income but cost a whole lot more in reduced stamp duty. And their 50% income tax rate for successful people will force those people abroad (to join the hundreds of thousands who have already gone) or will disincentivise them from achieving and earning the money in the first place. When Gordon Brown applied a 50% top tax rate the amount of money received by the government plumeted.
You know this will all happen, it always does under Labour. And this time they are promising to increase borrowing before they even get into power.
So there you have it. To pay for Labour’s financial incompetence your house will be worth less, your mortgage payment will be a lot bigger, you will be driving a worse car, your taxes will go up and everything that you buy will be more expensive. And, as the economy suffers, there will be far fewer jobs. So things will be even worse for a lot of people.
Do you still want to vote Labour?