Is this really the answer to our ills?
The Government's latest plans to boost the economy are controversial – not least because many would argue that they seem superficial and more about grabbing headlines than providing any real long-term solution to the country's ills.
Prime Minister David Cameron and his deputy, Nick Clegg, want to relax the planning rules to get local authority planning officers "off people's backs" to stimulate the building of homes and extensions.
Planning officers are an easy target and it is an unworthy jibe. There is no evidence to suggest they do anything other than deal with plans allowing for the rules and guidelines that have been applied, often through Government.
In fact, figures show that planning permission has been given for 400,000 homes that have not yet been built.
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Let's get one thing clear – the construction industry has been massively hit by the recession and is in need of a stimulus. It is also a proven fact that an expanding construction industry can kick-start the economy.
However, the problem is not the planning rules – it is the cost of homes. Mortgages today often have the requirement for a deposit of 20 per cent when buying a home.
This level of deposit is out of the reach for the vast majority of first-time buyers. Those lucky enough to find the home of their dreams at just £100,000 will have to save £20,000 as a deposit.
Housebuilders and developers are well aware of this and know there is little point in building homes no-one can afford. Just who would be buying all these new homes?
The Government has offered to extend its FirstBuy scheme to a further 16,500 first-time buyers to help with this problem.
It is frankly a pin-prick as far as the total numbers are concerned and is likely to make little difference.
The real gem in the raft of Government measures is the proposed relaxing of the rules to allow people to build slightly larger extensions without needing planning permission.
It is frankly difficult to believe that this minor change will suddenly see thousands building extensions and providing the kick-start the economy needs.




Comments
by Bob491
Tuesday, September 11 2012, 11:13PM
“Quote: "I wonder if Mr Osborne has 'o' level Economics?"
In fact, with vast amounts spent on his privileged education, the Con boy Osborne still only managed a second class degree in history (not economics). Added to that he has little experience of family life (his younger years were spent at boys only boarding school), little experience of life outside school, university and the Con party, and no idea of what life is like for the vast majority of un-rich.
No wonder he is such an unimaginative failure as Chancellor.”
by Bob491
Tuesday, September 11 2012, 11:03PM
“Quote: "Who is paying for the extentions? "
The only people who can afford large extentions are likely to be tax avoiders and bosses who unfairly pay themselves £millions. The rest of us haven't got the money. But you can't expect millionaires Cameron and Osborne to realise that.
Smaller public sector means far more unemployed, which means higher UK debts (as is now happening) which in turn leads to higher taxation (as is now happening) except on the already over wealthy who under the Cons will pay less (as is now happening), and consequently lower growth and many failed businesses.
It also means more crime (less police), more unhealthy workers missing more days work (less doctors and nurses), poorer education (fewer good teachers) which long term forces even lower growth and more immigration, and far more riotous summers like last year when the larger numbers of no hopers rise up.
Basically austerity leads to higher debts which lead to more austerity and then even higher debts which can't be paid off as there is no growth so recession continues ever worse and worse. The over wealthy lead a cushy life while the un-rich suffer enormously. The more educated un-rich then leave the country in vast numbers, as they do in Ireland.”
by garyb2011
Tuesday, September 11 2012, 8:19PM
“sansue
You right - I got an 'A' actually
It's jobs day in the Mercury tommorrow - hopefully there will be loads of Equality and Diversity opportunities”
by sansue
Tuesday, September 11 2012, 8:10PM
“"Oldhenry - you are correct, Lower taxes + smaller public sector = growth"
Good god, that wouldn't have even got you a pass at CSE level Economics..............”
by garyb2011
Tuesday, September 11 2012, 7:55PM
“Bob
When did I deny that we are in recession?
When did I deny that the ONS figures were correct?
You are economically illiterate
Also, still waiting for your definition of tax avoiders by the way
Oldhenry - you are correct, Lower taxes + smaller public sector = growth”
by oldhenry
Tuesday, September 11 2012, 4:34PM
“No politican has a clue how to get out the mess so they do a knee jerk reaction to something they have a bee in thier bonnet about. Planners. Of course only a fool would think extending houses is going to provide economic growth to the whole country of 2% a year.Who is payng for the extentions? Precisely, people have no spare money as it has gone into paying extra taxes, massive inflation on almost everything we need. So the answer to economic growth is simple. Reduce taxes, keep inflation low and people will spend their excess cash in making the economy grow.
I wonder if Mr Osborne has 'o' level Economics?”
by Bob491
Tuesday, September 11 2012, 2:19PM
“Quote from garyb2011: "churning out the same old unsubstantiated statements"
This is the usual Con reply to official statistics from ONS that they don't like.
I could have added rising debts, forced up by the incompetent Con boy Osborne's failed austerity programme, the lack of business confidence and lack of lending to small businesses, the dramatic increase in business failures, the mounting queues at food handout stations, etc. Osborne forcing the country into long lasting double dip recession is only part of the failure.
At least Gary is correct in one thing - the EU on average is doing much better than this country is, though obviously those countries with severe austerity measures such as Greece, Portugal and Spain are suffering a lot too since they have no hope of paying back debts with negative growth. The greedyguts bankers (or banksters) have a lot to answer for (they still receive the £millions each year though!).
As for the despicable wealthy tax avoiders, they are people and businesses who avoid paying tax as they should (as everyone knows) thereby depriving the country of many £billions in tax. Instead ordinary people in their millions have to pay the price of their greed instead, just as they are already paying the price of the banksters greed.
I'd imprison anyone who avoids taxes of more than £10,000 until they paid their rightful share, just as MPs who overclaimed that amount in expenses were rightly jailed.”
by Grant2010
Tuesday, September 11 2012, 1:47PM
“My point is garyb2011, that far too many of us find ourselves believing we are better than others, basically just because they are in a different position (skin colour, work status, academic prowess or other reasons). People employed in the "public sector" are no different to those that work in the private sector (an infinite mixture, differing in an infinite number of ways). Many transfer from one to the other and back without even any preference, other than job opportunity. That includes those in executive positions as much as those in what's seen as menial post. Many are ex-self-employed or business people that have retired or ran into difficulties and taken the first job available no matter what. Most have no hidden agenda or pecuniary interests, other than to stay productively occupied whilst circumstances allowed.
If we ordinary people treat each other with contempt, we well deserve that contempt thrown back in back in double. Like an eye for an eye and tooth for a tooth, that will just leave to many ordinary folk blind and toothless.
So whilst we all as individuals have a right to complain (and rant), we should stop before it reaches the level of mass hatred campaigns against any groups. Whilst I hope both you and I would go no further than the occasional rant and rave, there are others that will go well beyond that and some that will encourage it till it is almost unstoppable.
Hitler though himself better than most, yet when the chips were down, he had not the courage to face up to the results of his evil stupidity. There but for the grace of god go all that think they are better than others or indeed those that believe some are better than others.”
by garyb2011
Tuesday, September 11 2012, 12:44PM
“Bob
Erm I think that you will find that I am more than happy to debate your arguments when you find time to actually make some rather than simply churning out the same old unsubstantiated statements.
You said that George Osborne is responsible for our current economic plight - I asked how yet all you can do is quote growth figures. We know that we are in a recession (and the rest of Europe is heading there too) but if you are so keen to blame one person I think that you should at least be able to offer some evidence of what action has or has not taken that has contributed to it. Please do not talk about austerity by way, or equate our situation with Greece because there is no austerity in the UK.
You complained about 'Wealthy Tax Avoiders' - I asked what you meant - you ignored it. I suspect that is because what you really mean is that anyone is wealthy (having more money than you that is) is an 'avoider'. What you want is for others to pay.
As for Grants rant ( which I am assuming are the arguments that I have 'no idea how to oppose'). Well Grant's Socialist Worker copy/paste is not worth the time of day. He may raise some interesting questions but linking them to a theory that equates the plight of the 'ordinary folk' (whatever that means) with mass murder is at best pathetic.”
by Bob491
Monday, September 10 2012, 11:39PM
“Quote: "Thanks for the rant "
Yet again garyb2011 comes out with a mindless cliche when confronted by arguments he has no idea how to oppose!
And he should also stop manipulating the red and green arrows for his own selfish ends.”