The government under both New Labour and the Conservatives continue to follow comparable dogma in place for the past 30 years despite the economic crash.
The government appears to believe in Trickledown effect on steroids. Business rates, will be more retained in local areas, rather than redistributed, Osborne looks to reduce top rate tax and business taxes in general. In a world were cheap credit is dry, he seeks to win from inward investment and trickledown and to grow growing regions even faster with no awareness of saturation or the Utility Penalty which so greatly undermines our economy today.
We need to throw the kitchen sink at the economy: seek to dramatically reduce the wealth gap, so that the market economy can do its job - efficiently provide for demand signals - which is okay, when spending power is evenly distributed at the moment this is not the case.