§ It is our belief that many of these failures are themselves the result of actions and interventions by the Government themselves—laws that stand in the way of change and stifle enterprise; and, as important as anything, a structure of taxation that might have been designed to discourage innovation and punish success.
§ Of course there are many other causes of our decline. That is not in dispute. But we believe that it is more sensible for the Government to make those beneficent changes that are undoubtedly within their power than to preach the need for changes that lie well beyond their authority. Certainly, improvement remains unlikely unless we are prepared to change the laws and taxes to which I have referred.
§ That is why the British people are convinced—as we believe—that it is time for a new beginning. Our strategy to check Britain's long-term economic decline, which has gathered pace in the last five years, is based on four principles.
§ We need to strengthen incentives, by allowing people to keep more of what they earn, so that hard work, talent and ability are properly rewarded. We need to enlarge freedom of choice for the individual by reducing the role of the State. We need to reduce the burden of financing the public sector, so as to leave room for commerce and industry to prosper. We need to ensure, so far as possible, that those who take part in collective bargaining understand the consequences of their actions—for that is the way to promote a proper sense of responsibility.
§ Those principles require substantial change in the way in which our economy is allowed to work. The tax changes that I shall propose today will be only the 241 first step. They will take us a long way in the right direction.