Labour’s approach to the deficit is to start cuts at the beginning of next year, whereas the Tories want to start their cutting the minute they get into power. From the public’s point of view, if cuts were to start straight away, they may be tempted to hang onto their money. If that were the case, then consumer spending will fall and we can expect a knock-on effect for the window and conservatory industries. However, were Labour to retain power, and cuts were made later, maybe the public won’t be as cautious and carry on spending their money.
In an ideal world, Labour might adopt the Lib Dem strategy of giving everyone a tax break where they don’t pay any on the first £10,000 they earn. Though doubts remain how they will be able to fund such a big difference.
Hopefully the general public won’t be scared into stopping spending just because there is an election on. We need the momentum that the window industry has built up since the end of 2009 to carry on.