Labour has gone backwards in the past five years, they have gone from a credible party of government to a party that can’t seem to face up to economic reality. And this is the first reason not to vote for Labour, they claim they want to balance the budget but at the same time I can’t find a single thing they intend to cut. On the Labour website they say they actually want to undo Conservative cuts. They do however want to raise taxes, including the 50p tax, which makes little sense as the tax was shown to have little benefit and bringing it back could harm the economic recovery. And they also want to introduce a mansion tax, which shows how out of touch they are as every other political party has rejected this idea. Labour however seems completely unaware that this is a policy that attacks aspiration it is the sort of policy that the 1980’s Labour party would support. These two policies show the dividing line Labour is trying to create, the Conservatives protect the rich and Labour won’t. However they are failing to realise the massive tax cut the coalition has given the working poor by raising the tax threshold to £10,000. This Labour party seems economically to be more about hammering business and the rich that trying to get the economy back on track, the 50p tax is a prime example of this it is a show tax that only risks hurting the economy.
Labour has more policies that are ignorant of the economic reality, including the living wage. The living wage is a nice idea but has several flaws, a living wage will damage the job prospects of young and unskilled workers, as it makes these people more expensive to employ meaning companies will employ less unskilled and young workers. Basic economic theory can explain the negative effect a living wage can have on an unskilled worker. Following on from this if it is harder for unskilled workers to get a job the unemployment rate will rise again just as jobs are starting to appear again. Another policy that shows that Labour can’t be trusted with the economy is their pledge to freeze energy prices, firstly it is worth pointed out that Labour created the big 6 energy companies. Secondly the way to lower energy prices is to help create competition in the energy market not freeze prices, this just leads to a large price rise before the freeze and a large price rise after the freeze.
Labour keeps promising spending and when they are asked how they will fund it they say a tax on banker bonuses or a mansion tax. They expect to be able to spend to improve schools, increase NHS spending, 25 hours of free childcare and build an extra 200,000 houses. The only thing Labour will do with these policies is increase the deficit. Labour is also attacking the spare room subsidy which they created in the private sector and the Conservatives just expanded to the public sector but now they call it a bedroom tax it’s not even a tax. The bedroom tax is a prime example of Labour scare tactics, they rebrand Conservative policies and give them frightening names or motives, another example is when they say the Conservatives are trying to privatise the NHS this is complete and utter nonsense.
Labour don’t seem to offer anything that looks credible for dealing with the deficit, they seem to want to restore everything to how it was before 2010, but they are choosing to ignore economic reality. They are relying purely on scare tactics due to their lack of credible policies. That’s why they ignored the reality of tuition fees, that is why they spread a lie about the privatisation of the NHS, and that is why they brand the spare room subsidy a bedroom tax. The reason you should not vote for Labour is a simple one they are all scare tactics and slogans and lack any policies that can balance the budget.