It’s the economy, stupid!

I write this before the General Election and have no idea of the outcome!

What I do know is that on the economy we have many achievements. Unemployment has more than halved, from 8% under Labour to 3.9% currently. We are now only borrowing £1 for every £34 we spend, compared to borrowing £1 for every £4 spent under Labour in 2010. A thousand jobs have been created, on average, every day under the Conservatives and youth unemployment has halved.

In 2010 a worker on the National Minimum Wage earned £5.80/hour, which for a 40-hour week meant £12,064 a year. The introduction of the National Living Wage by the Conservatives means that this year the same person would now earn £8.21/hour or £17,077 a year - £5,000 more. In 2010 the lowest paid workers paid Income Tax on earnings above £6,475 but now workers don’t start paying Income Tax until they earn £12,500. This has given 32million people a tax cut and taken more than 4million people out of Income Tax altogether.

According to The Resolution Foundation (an independent think-tank focused on improving the living standards for those on low to middle incomes) these Conservatives policies have resulted in the proportion of employees on low pay falling below 20% for the first time since since the 1980s. When inflation and the rising cost of living are factored in, the poorest fifth of households have nearly £2,000 more disposable income than they had a decade ago under Labour.

The successful management of our economy has meant we have been able to invest in our public services. For example, NHS spending has increased from £111.7billion in 2010 to £139.3billion and the State Pension, which was worth £102/week for a single person in 2010, topped up to £137/week for the least well off via pension credit, is now £169/week for all pensioners.

After 12^th December, either the Conservatives or the Labour Party will be managing our economy. A Conservative Government will support our businesses (in contrast Labour have already promised to increase Corporation Tax from 19% to 26% which will hit businesses hard and impact on jobs) and continue to deliver record investment in areas such as healthcare and education (Devon’s schools will receive a 14% increase in per pupil funding over the next two years).

We will raise the National Living Wage to £10.50 by the end of this Parliament and increase the state pension by £344/year next year. My fingers are crossed that it is Mr Johnson who is now in Number 10 but in this volatile political world, as I write I have idea what will have happened!

Other columns by Mel Stride