When David Cameron announced new economic policy today I believe it was very much about doing two vital things.
First of all his announcement that everyone who is a basic tax payer will not pay any tax on interest derived from savings gives those who have been prudent a little more in their pockets as a reward for doing what is right and saving. The same applies to his proposal to increase the tax allowance of pensioners by an additional £2,000 as it is people on fixed incomes who suffer most when interest rates plummet.
Secondly his announcement sends a message to everyone that there is a real difference between Labour and the Conservatives. Labour believe the State should spend more, put everyone into unprecedented levels of debt and innocent bystanders who suffer as a result of government policy are an acceptable casualty. David Cameron believes that the State should reward those who have done the right thing in order to demonstrate, to those who have not, that saving and not spending excessively is the best way to a successful country and economy.
So many East Renfrewshire pensioners have told me that income from interest on savings they had been relying on has dried up and that they feel it is immoral that the State demand they pay tax on interest on money they paid tax on when it was genuine income. I have always agreed with this and will happily campaign alongside David Cameron for those on the lowest levels of income and pensioners on fixed incomes to be exempt from paying tax on their savings. Britain must be a fair country if its economy is to recover and in David Cameron we have a leader who clearly understands what needs to be done.