Yesterday Nick Clegg outlined the details of a new way to provide fiscal stimulus when he addressed the Commonwealth Society. Calling for a multi-lateral global response to the current crisis he said:
"We need a cultural change. But I believe that change can be driven to a large extent by institutional and regulatory reform. Changes to the International Monetary Fund, the World Bank, and the World Trade Organisation could make an enormous difference…
"Enabling us to create a fairer, more sustainable economic model."
He critiqued both the Labour and conservative Tax proposals:
"We hear talk of tax cuts emerging from Downing Street, but they are likely to be small, and short term. Funded through borrowing, the money will have to be paid back later…
"So it’s meagre tax cuts today, giant tax rises tomorrow from Brown.
"Meanwhile the Conservatives want a piffling incentive for businesses to take on new workers that won’t put a penny in the pocket of a single family in Britain.
"Neither package comes close to what’s needed."
Before outlying the real alternative.
"Real tax cuts - big, permanent and fair - for the people who need them. Funded by making the wealthy pay their fair share, ending the special exemptions and loopholes they’ve profited from for so long."
Yousuf also said that the Lib Dems had no spending in their plan. Not so we're merely spending where it will boost the economy not on ego enhancing frivolities.
"We are identifying £20bn of government spending that can be redirected to our priorities.
"We need to redirect spending to the things that people really need in a recession: homes for hard-pressed families; good child care, so that people can go out to work; and training for people who have lost their jobs."