Cameron calls for "savings economy"

06/01/2009

David Cameron called for an end to Britain as a "spend, spend, spend" society in a speech yesterday.

The leader of the opposition said that, instead, there should be an "economy built on savings".

Accordingly, he proposed that income tax on savings for basic rate payers should be scrapped.

This tax shortfall would, he said, be covered by reductions to Labour's public spending plans.

Currently, the government is proposing big infrastructure projects in order to keep more people in work in the current economic downturn, which will be backed by the public purse.

"We need to make a really big change: from an economy built on debt to an economy built on savings, from a country and government that has lived beyond its means to one that lives within its means," Mr Cameron added.

Responding to the plans Yvette Cooper, chief secretary to the Treasury, told Sky News that the plans were "madness" and that the Tory leader "doesn't understand what the economy needs".

Tags; Current UK Economy, Young Family Finances, Retirement Money Problems, Credit Card Lifestyle, Recent Graduate Debt,

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