ELECTION 2015: Economy and what the parties would do about it

Unsurprisingly the economy has proven to be a key battleground ahead of the General Election, with each of the parties clashing over how they would balance the books while also funding important projects.

All of the parties have also spoken about how they would boost small and medium-sized businesses to give them the support they need to become successful, job-creating powerhouses.

With the General Election just days away we asked five candidates in Hampshire to spell out how their party would look after the economy, boost jobs and support Hampshire's businesses if they win the General Election.

BALANCING THE BOOKS: What is your party's approach to balancing the books?

Adrian Ford, Liberal Democrat, Southampton Test: “The Liberal Democrats have said that we will make it a pre condition of any coalition that the party we join with will put forward a timetable for completing the job of ending the deficit.

“This must be done within 50 days of the start of a new parliament .We want a balanced approached that will avoid any more cuts in benefits.”

Ron Meldrum, Green, Eastleigh: “The Green Party has laid out a budget as published in its manifesto. It suggests that by 2020 the deficit would be down to £21 billion. To achieve this, government spending would be cut in some areas, and more revenues would be raised in other areas through taxation. For example, any company operating in the UK should be taxed on the turnover that is raised in this country. It is estimated that this could bring between £70-120 billion in extra revenue.

“Why successive governments have failed to address this is unclear me. There are a number of other measures such as the scrapping of Trident, putting extra taxes on unhealthy foods and cigarettes, as well as abolishing tax relief on the interest payments of a number of land lord properties. These measures have the potential to bring in a further 30 billion. If these measure were not enough alone, the Green Party would then seek to implement the system of Positive Money, as opposed to the current debt based model.”

Andrew Pope, Labour, New Forest East: “Build a strong economic foundation and balance the books, cutting the deficit every year. None of our manifesto pledges require additional borrowing, and the manifesto is fully funded.

“The Tories have accumulated more debt in 5 years than Labour did in 13 years of Government. They have borrowed £200 billion more than they planned over this Parliament.

“Labour will inherit a £75 billion deficit, because the Coalition Government failed to eliminate it. It's been the slowest economic recovery for over a hundred years. They've also blown the social security budget by £25 billion, due to the weak recovery.

“The only way the Tories can fund their manifesto commitments is by raising VAT again, which they did with the Lib Dems although they said they wouldn't. This is a deeply regressive measure that impacts the poorest the most. Or they might cut public spending to dangerous levels. Labour will protect the NHS and education budgets.”

Sandra James, UKIP, Romsey and Southampton North: “Balancing the books means delivering a fiscal plan that addresses the enormity of the UK's current annual deficit and the consequent escalation of the UK's national debt. UK debt stands now at almost £1.6 trillion, with interest payments alone on this debt amounting to three per cent of the UK's GDP. It is vital we address this.

“UKIP's manifesto has been independently audited and this is a first in British politics.UKIP's fiscal plan returns a surplus to the UK economy immediately from 2015/16. UKIP's deficit elimination plan is spearheaded by savings from an EU exit (Brexit), the cancellation of HS2 and the replacement of the Barnett formula amongst others, (we are the only political party which has a commitment to replace the Barnett formula).

“Alongside these defined savings we will cut taxes and increase spending on vital services such as on our NHS (an increase of £3 billion per annum) and on defence where we will allocate spending equal to two per cent of GDP in line with NATO's recommendation.”

Caroline Dinenage, Conservative, Gosport: “Labour let the public finances run out of control - leaving Britain with the largest deficit in our peacetime history. Since 2010 Conservatives have been working through our long term economic plan: halving the deficit and getting the debt as a share of national income falling.

“However the job is only half done. That's why we will have to further control the welfare budget: reducing the welfare cap to £23,000, and freezing benefits paid to people of working age. We'll also continue to make sure the richest pay their fair share by clamping down on tax avoidance.

“Over the past five years the richest 20 per cent have contributed more to reducing the deficit than the other 80 per cent; we want to stick with the balanced plan that means the richest bear most of the burden in balancing the books, while we continue to protect services like the NHS.”

BUSINESSES: What will your party do to support small and medium-sized businesses?

Adrian Ford, Liberal Democrat, Southampton Test: “We will Introduce a package of support for the UK's medium sized businesses, including special support to promote exports.“We will help to increase the share of public procurement spend SMEs win to one third of Government deals and implement the changes set out in the Small Business, Enterprise and Employment Bill.

“The Liberal Democrats would continue to maintain existing schemes and press banks and other financial institutions for easier access to finance by SMEs. Monitor progress on late payment and takefurther action if the measures incorporated.”

Ron Meldrum, Green, Eastleigh: “The purpose of business is to create employment and to raise revenue that can be redistributed back into the local economy. The Green Party favours cooperatives where possible as we believe everyone in that organisation is more likely to try and make that organisation a success, with profits shared more equally. We recognise however, that many businesses do not have that structure.

“If a business fails it is often because of failure to adapt to change in market conditions, which no government can legislate for. Businesses that are already successful don't really need government support.

“Therefore most help is needed for start-ups. New start-ups often miss calculate the overheads, so we would seek to help businesses keep their overheads low, by reviewing the business rate, lease hold law and corporation tax. We also encourage operating on an environmental friendly basis and could use the tax system to encourage this.”

Andrew Pope, Labour, New Forest East: “Labour is on the side of Britain's businesses. We believe that international trade and co-operation leads to a better Britain - not the isolation of the Tories and UKIP that brings a race to the bottom.

“In Labour's first budget, we will ensure that Britain has the most competitive rate of corporation tax in the G7. We will postpone the planned corporation tax cut for large businesses, and instead cut business rates for 1.5 million small businesses and then freeze them the following year.

“This is part of Labour's Better Plan for Small Businesses, which includes action to tackle late payment and reduce unnecessary regulation via our new Small Business Administration which will co-ordinate work across government to benefit small businesses.

“Labour will act to reform banking to ensure it supports small businesses. We will establish a British Investment Bank and strengthen the Green Investment Bank. We want to see at least two new challenger banks and we support a regional banking network to boost lending to small firms.”

Sandra James, UKIP, Romsey and Southampton North: “There are estimated to be 5.2 million small businesses in the UK, employing over 12 million people and with a combined turnover of £1.2 trillion. It is essential to support these small businesses as the life blood in returning our economy back into surplus.

“We want to support small businesses in several ways. The Small Business Rate Relief currently only applies up-to a rateable value of £12,000 we want to see changes to this so that 90 per cent of business properties (1.5 million businesses in total) and who have a rateable value of up-to £50,000 are eligible for 20 per cent rate relief. We will support small businesses from receiving late payments by introducing an evidenced based reporting system working with HMRC.

“UKIP will pilot a scheme to improve access to trade credit insurance for small business, this insurance (whilst already in existence) can prove restrictive for smaller companies especially in certain sectors. We will make it easier for small and medium sized companies to tender for public sector contracts by removing the necessity to demonstrate compliance in areas which are irrelevant to the job tender. We will cut EU red tape.”

Caroline Dinenage, Conservative, Gosport: “As a small business owner I am proud of the record of Conservatives in Government on supporting small businesses. We've cut the jobs tax, meaning almost half a million small businesses now no longer pay national insurance, while also cutting corporation tax to the lowest level in the G20.

“We've slashed red tape, saving businesses an estimated £10 billion, and we've reformed education and started two million apprenticeships (over 9000 in my constituency alone!), ensuring our young people have the skills businesses need.

“If Conservatives get back in we'll pick up where we left off: continuing to cut red tape, delivering 3 million more high quality apprenticeships, and of course eliminating the deficit so businesses have the security of knowing our public finances are under control and there is a strong foundation to the economy.”

TAXES AND SERVICES: Will your party make any tax rises/and or service cuts?

Adrian Ford, Liberal Democrat, Southampton Test: “The Liberal Democrats will: introduce a mansion tax for homes worth over £2 million pounds; clamp down on tax avoidance schemes and review tax laws to prevent companies avoiding paying all of their corporation tax.

“Those pensioners paying upper rate tax will lose the free television licence and winter fuel payments.”

Ron Meldrum, Green, Eastleigh: “Natalie Bennett has suggested that the top rate of tax would be raised to 60 per cent. I believe this is completely justified. It is understood that Malcolm Rifkind claimed he could not possibly live on £67k a year, whilst the rest of us have to live on considerably less.

“The Green party wish to stimulate the economy and create jobs by injecting money into the bottom of the system with instruments such as pensions, citizens income, family credit etc. Rather than having top-down quantitative easing that seems to have no signs of success in creating a trickle-down effect; the Green Party would wish to see a bottom-up quantitative easing model that would thusly create a trickle-up effect.

“I understand that the original designer of quantitative easing works at the University of Southampton, and that this is the way it was originally conceived.”

Andrew Pope, Labour, New Forest East: “Labour does not know the full budget that it will inherit when it takes power, and it will inherit a £75 billion deficit. None of our manifesto pledges require additional borrowing. George Osborne blocked our Manifesto from being checked by the Office for Budget Responsibility, because he knows that it is fully funded, but does not want to admit it.

“Labour pledges to protect the NHS budget and the full Sure Start to post-19 education budgets.

“We will re-introduce the 50p tax band for the highest earners which the Tories and Lib Dems scrapped. Labour's NHS Time to Care Fund will be funded by a mansion tax for properties worth more than £2 million, a levy on tobacco companies, and a crackdown on tax avoidance.

“Labour will pay for the Jobs Guarantee for unemployed young people by a tax on bank bonuses. We will remove Pension Tax Relief for pensioners with the highest incomes, in order to fund a £3,000 cut in tuition fees.”

Sandra James, UKIP, Romsey and Southampton North: “UKIP is different from all the other political parties with regard to tax rises and service cuts. Our manifesto delivers a reduction in taxes whilst increasing spending on vital services such as to the NHS and defence.

“We have been straight with the electorate unlike all the other parties who have yet to explain where their cuts will fall or as a result of their unaudited fiscal plans have service provisions which remain uncertain in their delivery or require raising taxes to implement.

“The financial savings that UKIP can deliver from returning sovereignty to our country and where we take control back from the EU, allows us to determine and grow our global trade - free from EU restrictions and saving the huge annual cost that our EU membership costs us.

“These Brexit savings combined with savings from the Barnett reform ,HS2 et al allows funding to be directed to much needed services such as to our NHS and into Social Care.”

Caroline Dinenage, Conservative, Gosport: “The Conservative Party is absolutely clear: we will not raise income tax, VAT, or national insurance by a single penny. People make far better decisions about how to spend their money than the Government, so I'm delighted by our record of cutting taxes for 27 million people, lifting three million of the poorest people out of tax altogether, and if re-elected we want to go further; linking the tax free threshold to the minimum wage.

“Over the last five years we've shown that by controlling spending on welfare and clamping down on tax avoidance you can afford to cut taxes for ordinary people and protect spending on services like the NHS while paying down the deficit - and that's exactly the plan that we have for the next five years.”

EMPLOYMENT: Official figures show overall employment in the UK is rising - what will your party do to continue this trend?

Adrian Ford, Liberal Democrat, Southampton Test: “The Liberal Democrats will continue with the successful apprenticeship programme which has seen two million new apprenticeships during the last parliament, complete the introduction of universal credit to incentivise work and build on the success of the Regional Growth Fund which has already delivered 573,000 jobs and £16 billion of private investment.”

Ron Meldrum, Green, Eastleigh: “For the last five years of government, we have seen many cuts in services, people at the lower end of the scale having less disposable income, the rise in use of food banks, of self-employment, and the implementation of zero hours contracts. “Resultantly, people now feel less financially secure. The fear bred by this, has led people to falsely believe that migrants are the problem. This is a fear that the far right of British politics has exploited.

“The Green Party's trickle-up model will help to create jobs, to balance the books and a feeling of greater security. Employment has risen, but so has polarisation. This inequality can be addressed by creating a fairer deal for all, through generating stable work, locally. The redistribution distribution of the wealth that is available stimulates the economy, as well as seeking to provide more suitable employment opportunities for all in society.”

Andrew Pope, Labour, New Forest East: “Encourage economic growth by growing tax revenues in a high-skill, high-wage economy - not the low-skill, low-wage economy encouraged by the Tories. Labour will not jeopardise important public services like the NHS and education by making dangerous levels of cuts to public expenditure or raising VAT again. We will encourage ethical and stable businesses via national and local government contracts, like in Labour-controlled Southampton.

“Labour will introduce a new universal gold standard for apprenticeships, protect the further education budget for 16-19 year olds, and introduce new Technical Degrees. Every school leaver who gets the grades will be guaranteed a high-quality apprenticeship.

“Labour in Hampshire will encourage a living wage via a tax incentive at local employers like the Tory-led councils that to pay it, and for a living wage at local professional football clubs Southampton, Bournemouth, Reading and Portsmouth.

“We will devolve transport, housing, skills, business support and other important decisions worth at least £30 billion over five years to local people via city and county regions across England, so that economic growth can be led by local people and businesses.”

Sandra James, UKIP, Romsey and Southampton North: “Uncontrolled mass immigration has created wage stagnation in the UK; whilst levels of UK employment have shown some increase, this picture is muddied with these jobs often paying the minimum wage or generated through the use of zero hour contracts.

“The problem of unemployment in the UK is very much apparent with 1.8 million people, yes 1.8 million people currently unemployed, of which 750,000 young people aged 16-24 are unemployed, (this latter figure is recognised as remaining stubbornly high). By leaving the EU and restricting immigration through the use of an Australian-style points based system we will give hope to British workers for a brighter future.

“We will place a five year moratorium on immigration for unskilled workers, which will enable the unemployed living in Britain to find work and those already working to see wage growth. UKIP will limit highly skilled work visas to 50,000 per annum including those from the EU. Our new immigration policies will begin when we confirm our intention to leave the EU with an 'out' vote in a national referendum.”

Caroline Dinenage, Conservative, Gosport: “The UK is the jobs factory of Europe - over the last five years we've created more jobs than every other European nation put together. Two million jobs have been created since the last election - 80 per cent of which are full time - and we've felt the effects locally, with unemployment in my constituency of Gosport halved. Importantly only two per cent of jobs in the UK are “zero-hours contracts” - and according to recent polling the majority of people on them enjoy the flexibility and wouldn't want any more hours.

“To continue this trend we first and foremost need to stick with the plan of paying off our deficit to make sure we have a solid economic foundation. Conservatives in Government will continue to encourage enterprise by cutting red tape and taxes for small businesses, reward work by reforming welfare and cutting taxes for working people, and provide people with the skills they need to get on life by creating an additional three million high quality Apprenticeships over the next five years.”