In reply to Paul Wilson’s letter, (Oxford Mail, June 1), I would like him to appreciate that I am well aware of the financial situation that the country finds itself in and the gravity of measures required to rectify the situation – perhaps in more detail than he does himself.

However, Mr Wilson’s letter is full of political spin and offers no fiscal answers to the problem, other than spending cuts and higher taxation.

It seems to be typical Tory policy, written on the back of a matchbox.

So what are the alternatives, and where will the money come from?

In order for any government to maintain payments, we must have sustainable industry and bring people back into work.

There are many reasons for this. Firstly, if people are employed they pay taxes and are not claiming benefits.

Secondly, companies at home generate wealth for the nation by reducing imports.

Thirdly, manufacturing requires support from utilities such as gas, electricity, water, transport, warehousing, and raw materials. Money is paid to suppliers and, in so doing, they generate more wealth which, in turn, is taxed and becomes income for the Government.

A lot has to be financed in some part by the banks, as companies just don’t have the money to splash around. But sensible borrowing by the private sector has to take place to start the cash generation which the nation needs.

Just taxing the private individual into the ground, as was done by the Thatcher administration in its early years, was not the answer then, nor is it now. It was also the Thatcher administration that took away manufacturing from this country in favour of financial services, which have failed us miserably.

At least David Cameron sees manufacturing as the way forward, and as a way to provide a sustainable future.

This is something that should have been done years ago and, in so doing, we would have created a strong Britain for the benefit of the masses – whereas financial-based businesses benefit a few, mostly Tory voters, around the City.

Mr Cameron can see the folly of this and is attempting to do something about it.

The soon to be unveiled mini- budget will be the first of many instalments no doubt. The freeing up of funds by the banks for small and medium businesses is something that has been demanded by Mr Cameron and his party since the banking bail-out, so I don’t see what has changed.

Higher taxes and budget cuts are not the long term answer, and why should the innocent continue to bail out the guilty?

Steve Plant

Thorney Leys

Witney