Why the surprise at Osborne’s pre-election house-price bubble?

There has been much wittering and hand-wringing�in the press and TV about Britain’s house-price bubble and whether the Government or Bank of England�should act to stop rocketing prices.

So, is the house-price bubble a result of Britain’s improving economy, as the Government would like to claim? Or is it a cynical way for the Government to create the illusion of economic growth in a desperate attempt to win the 2015 General Election?

I’m not a conspiracy theorist and so prefer to look at the facts. And the clue to what is happening can be found�towards the end�of George Osborne’s 116-page 2011 budget report. What? You haven’t read it? Clearly none of our financial journalists have bothered to read it either, otherwise they would understand what the Government is up to.

In the report, Osborne makes projections about how the Government’s tax take will increase between 2011-12 and 2016-17 (click to see more clearly)

Yup, there ‘s the clue. Income Tax payments projected to increase by 34%; National Insurance forecast to rise by 36%�but Stamp Duty (from property sales) planned to shoot up by a huge 85%. So, as far back as March 2011, the Government had been planning to engineer a massive house-price bubble to create a ‘feel-good factor’ – as people saw the value of their houses rising they would feel confident to�move home and�spend more thus creating�the impression of an improving economy designed to return the Tories to power.

As for the fact that our supposed ‘economic growth’ is being supported by our useless Government borrowing and squandering �2bn a week and doubling our national debt from �700bn in 2010 to over �1.4trn by 2015 – well the Tories naturally choose not to mention that, preferring to big up the ever so�slightly decreasing deficit instead. So, if people�feel taxes have gone up under the Coalition, then in the words of Bachman Turner Overdrive�”Baby you ain’t seen nothing yet, here’s something you’ll never forget” https://www.youtube.com/watch?v=cFRk0FfaQi0�because after the 2015 General Election, someone’s going to have to start paying down our massive, unsustainable national debt and that’s going to hurt.

Meanwhile, today is a special day. �It’s the day on which we can give our self-serving, expenses-thieving rulers and their sycophantic cheerleaders in the media�a bloody nose. Vote UKIP!!!

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