If the British people vote to come out of the EU our budget deficit is immediately cut by more than £12 billion a year from that day onwards. There will be no more net contributions to the Union. We also gain the right to decide how to spend the money we pay over and above the net contribution which is sent back to us as EU payments.
Today I invite you to talk about what we should do with all that money if we do decide to leave. Should we be prudent, and simply borrow less, using the end of our contribution to speed getting rid of the deficit? Should we speed up the tax cuts, giving every family an EU exit bonus of around £660 a year? Or should we mix increased public spending and tax cuts, spending say an extra £350 per household on health and education whilst having a £330 tax cut?
Those favouring more spending should remember we will have the chance to spend more on the things that matter to us as we gain control over the EU spending amounts as we repatriate that UK tax revenue as well.
It will be a nice problem to have. I favour the tax cuts myself, as I think the current plans to get the deficit down are sufficient. The boost to incomes, jobs and activity from accelerated tax cuts would show this is indeed the prosperity policy I want. It would also make such a good contrast with the European austerity policies of Greece, Spain, Italy and Portugal, where governments are indeed following genuinely austere policies at the behest of the EU.