Osborne outlines plans for "a new British economic model"

George Osborne has stressed the need to learn the lessons of the past decade and ensure our economy recovery – when it comes – is strong, sustainable and balanced.

In a speech to the Association of British Insurers, the Shadow Chancellor said that “the model of economic growth pursued over the last ten years is fundamentally broken” and outlined plans for a “new British economic model”.

He explained that the economic policy of a Conservative Government would be rooted in three priorities:

• The immediate need to restore Britain’s international credibility and preserve our credit rating by dealing with our huge budget defecit
• The transition from an economy built on excessive debt to one built on savings and investment
• Re-focussing our economy from the rush for short-term gains to the pursuit of long-term returns

George said, “If we follow these three priorities I believe we can do much more than simply survive this recession. We can emerge from it with a stronger, more geographically balanced, and more broadly based economy in which more of the British people feel they are sharing in its success.”

He warned that re-electing Labour will mean “more instability, higher taxes, higher debt and higher debt interest costs” – and stressed:

“Electing a new Conservative Government is the safer choice for a strong recovery.”