Mr Osborne made it clear that in his view, swingeing and savage cuts, were essential to avoid the international business community losing confidence in Britain and he would not shy away from tough decisions on spending but that would only do so in a "careful and co-ordinated" way.
The Shadow Chancellor argued that the existing policy framework failed to prevent the crisis, is unable to deal with the current weakness of the economy and wont be able to stop it happening again. He set out a new economic model for growth based on saving and investment that can ensure that private and public debt are sustainable in the future, including:
A new system of financial regulation, with the Bank of England back in charge of controlling the overall level of debt in the economy.
A new fiscal policy framework, with an independent Office for Budget Responsibility to ensure that public debt is sustainable.
A supply side revolution that releases the pent up enterprise and wealth creation of our country, encourages a nation of savers, and addresses long term structural weaknesses like poor education and a welfare system that traps people in workless poverty.
Professor Geoffrey Wood, in attendance at the lecture, said: Mr Osbornes speech was excellent, sound conclusions very well argued and explained. I particularly welcomed the stress on having the right policy framework; too many people forget that in the discussion of day-to day numbers, most of which in any event we know to be wrong.
The annual Mais lecture is regarded as the City of London’s foremost event for the banking and finance community, and is attended by senior practitioners and academics. Since its inception in 1978, the Mais has maintained a tradition of prestigious speakers such as Tony Blair; Gordon Brown; Mervyn King, Governor, Bank of England (2005). The 2008 lecture was given by Chancellor of the Exchequer, Alistair Darling.
Located in the heart of Londons financial district, Cass Business School (http://www.cass.city.ac.uk) is a leading provider of business and management education.
Our MBA is recognised globally as a market leader, we have the widest portfolio of Specialist Masters programmes (MSc) in Europe and our Undergraduate School is one of the best in the UK. Ranked in the UKs top 10 business and management research schools, means we attract leading PhD students.