George Osborne made his keynote speech on the Economy yesterday and it seems to be going down quite well with the media. His speech was frank and candid in its tone; for those who missed George’s “astonishingly forthright speech” (to quote the Daily Mail), it started to spell out what measures a Conservative Government would take to get a grip on the national finances. Not everyone will be happy with the commitments (today the unions have come out against the promised pay freeze for public sector workers) but I believe that most of my constituents appreciate that when faced with a national deficit of almost £200 billion, we are all going to have to tighten our belts*.
I was especially pleased by his renewed commitment to re-link the state pension to earnings growth in the next Parliament in order to ensure a decent standard of living for all in retirement, halt the spread of means-testing and restore incentives to save.
George also announced an updated review of the state pension age, as recommended by Adair Turner’s Pension Commission. Given the state of the public finances and rapidly changing demographic projections, the review would consider whether the increase in the pension age from 65 to 66 should be brought forward from 2026, starting no earlier than 2016 for men and 2020 for women.
*Although Osborne did promise to protect the wages of those earning £18,000 or less. For those who did miss his speech you can read a transcript here