Osborne: the savers’ friend

GEORGE Osborne clearly doesn’t share some of his party members’ concerns about the detrimental effects low interest rates have on savers.

In October he told The Daily Telegraph:

It is a statement of fact that, with interest rates still at 4.5 per cent, there is plenty of scope to stimulate demand with lower rates.

Hat-tip to Rapunzel for alerting me to this.

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7 Comments

Filed under Economy, George Osborne

7 responses to “Osborne: the savers’ friend

  1. Mr. Charlie

    Are we after contradictions, Tom?

    How’s about this. The taxpayer funds Jaguar for c £1 billion pounds. Jaguar are owned by a company that can afford to sponsor a Formula 1 team.

    Uh?

  2. Mr. Charlie

    Another contradiction – a man who claims to be led by his moral compass is found to have no such thing.

    http://www.telegraph.co.uk/comment/columnists/iainmartin/4127282/Morality-is-making-a-comeback-and-thats-bad-news-for-Gordon-Brown.html

  3. richard

    I note that he doesn’t say how low. I presume that this is anticipating the BOE dropping the base-rate to 0.1% in the next few months.

  4. Mr. Charlie

    And ANOTHER contradiction for you, Tommy lad.

    NL repeatedly tell us there must be NO cuts in public services. Anathema. Ms. Balls sez so, so it must be true.

    But … how it is that the infamous Gershon cuts and her own post-2010 spending cuts announced in the Pre-Budget report somehow don’t imply public service cuts?

    Tom? Over to you. I am sure you can explain this apparent contradiction.

  5. Labour of course DOES encourage people to save – you can put £3000 a year into a Cash ISA, and all your interest accrues tax-free. If you had been doing this since 1997, you could have put in £33,000, and your total amount would be higher because of the interest earned.

    The trouble is that it is very difficult to persuade the poor to save. Only about 7 million cash ISA were opened in 2007/8 out of 60 odd million people. The Tory proposal won’t help the poor to start ISAs, it will just subsidise bankers putting their fat redundancy payments into cash accounts, and some poor low-paid public sector worker will get axed to pay for it. I wonder how much Camewron himself would profit from removing tax on savings?

  6. @snowflake5 “I wonder how much Cameron himself would profit from removing tax on savings?”

    He was talking about basic rate tax payers, I think.

  7. bupendra bhakta

    snowflake5
    If you had been doing this since 1997, you could have put in £33,000, and your total amount would be higher because of the interest earned.
    —————————————————————

    No sh*t, Sherlock.

    Shame though that this thirty-three grand would make you ineligible for all the means-tested benefits that this ‘Savings-encouraging-government’ lavishes on the ‘poverty-stricken’.

    So some, and I can’t believe anyone would, might say ‘not a lot of point in saving, is there’.

    Joined-up government, eh.

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