The original idea behind Plan A that we need a private sector led recovery to rebalance the economy and pay more of the public sector’s bills was a good one. The trouble was the government also tried to pursue other objectives at the same time. Several of these got in the way of recovery.
The government signed up to carbon taxes, renewables and dear energy. That has cut into people’s spending power, and made industry less competitive.
The government carried on attacking the banks and bankers, and forced them hold more cash and capital. As a result they were unable or unwilling to lend to smaller and medium sized enterprises to help them expand.
The government left RBS to get on with it, instead of insisting on an early and full clean up of the outstanding debts and balance sheet. As a result parts of the property market are still suffering from the overhang of the past, and a shortage of new credit for new purchases.
The government backed a High Speed Train plan, and more expensive replacement of railway bridges, instead of spending money on improving the crucial road network which transports more than 90% of our goods.
The Bank of England presided over a rapid inflation, which cut into people’s take home pay and left the markets short of confidence and spending money.
The government’s tax rates on higher incomes, on fuel, and on capital gains were too high, leading to a loss of revenues rather than bringing in more tax. These taxes meant some people left the UK altogether to earn large sums abroad instead, and others could only afford to do less. High inherited fuel taxes have hit everyone, and left many families short of spending power.