£6.25 billion cuts announced in more detail

Discussion in 'Current Affairs, News and Analysis' started by jagman, May 24, 2010.

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  1. George Osborne announces the first round of cuts-


    Thats the good news over, its taken the Treasury a week to come up with these cuts.
    The bad news is that to keep up with the rate of governemt borrowing he will have to come up with this level of new spending cuts every two weeks.

    Borrowing is running at £3 billion a week. That equates to the entire annual defence budget every 3 months.

    These figures do not include any savings in health, defence or foreign aid.

    Secifics include-

    Education £670 million
    Transport £683 million
    Communities £780 million
    Business £836 million
    Devolved £704 million

    By my reckoning, the cuts amount to about 1% of the 25% overall cuts required
  2. ugly

    ugly LE Moderator

    Defence is a real problem, losing a few thousand civil servants through wastage and also shutting down quangos will be a minor drop in the ocean. Not paying the daily bill to Europe would be a big win but the limp dems and The Hermans would be up in arms!
    To be honest I think that would take more balls than Cameron and a majority of 300 could manage!
  3. Its the incredible scale of the financial mess that I find a tad worrying.
    Even a 25% cut in sending would only stop the debt increasing but wouldn't address what the nation owes.
    The 1% cut detailed today is barely scraping the surface of what needs to be done.
  4. Hopefully we will soon see changes that will drive the millions of work shy slackers out of their state funded non employed comfort zones and back into work…

    Many Billions to be saved there.
  5. Spin, spin, spin!!!!

    £6.2 billion of savings this year by central government. Are you sure???

    £500 million being recycled into new spending, £700 million that regional assemblies can save next year not this if they so choose. £400 million that local governemnt has to save.

    So, if it all works out, central government is looking for just £4.6 billion this year and £2 billion of that is just cancelling ID cards and similar and demanding discounts from suppliers. Out of a spending budget of £750 billion, they've come up with only £2.5 billion from hard choices....
  6. I'm quoting the figures given in the news Whitecity, don't blame me if they don't add up!
    You will also note that I am unhappy with the scale of cuts and consider them a tiny fraction of what is needed.
  7. This is a softening up exercise. The general public simply are not prepared for the reality of the economic clustershag we face.

    The previous Government were not prepared to make the cuts needed because it would have cost them their core vote. Instead we got frankly mendacious rhetoric about needing to keep spending in order to 'secure the recovery'. Whenever anyone else talked about cuts the electorate took one look, decided it didn't like the idea of less spending, and ran away with its fingers in its ears singing la la la la.

    25% cuts to public spending are going to be painful. But if the Government is going to take the public with it and avoid Greece style rioting and unrest then the public need to be shown that cutting can and does need to happen.
  8. Good things coming out of Pippa Strouds office now she has been moved over as Special Advisor to IDS at the DWP - If Frank Field pulls through as Benefits Tzar we could have cross party (if not with the shadow cabinet with the Labour rank and file) benefit reform concensus for the first time... well ever.

    And thats whats going to save us the real money in the long run.
  9. Do not dismiss the "seeking discounts fron suppliers" as being a trivial issue that will not yield worthwhile results but only if you do it for real. But there has always been a bit of a problem with that:

    Woolwich Dockyard

    "While the Royal James was bringing towards the dock, we went out and saw the manner and trouble of docking such a ship, which yet they could not do, but only brought her head into the Dock, and so shored her up till next tide.

    But, good God! what a deal of company was there from both yards to help to do it, when half the company would have done it as well.

    I see it is impossible for the King to have things done as cheap as other men."

    (Samuel Pepys - Clerk of the Acts to the Navy Board, 21 July 1662)

  10. My bold: Come the autumn the public will have no choice but be prepared for the forthcoming radical changes required to sort this mess out.

    Also the public have known for a long time the 'Real' pain is yet to unfold & this coalition will/could well be hated by a % within the next 12 months for cuts the public face, but thats to be expected anyway

    It's interesting to read reports of MP's still moaning of changes but leading from the top & showing an example is one step forward even though there is a hell of a lot work still to push on with,

    The road ahead is getting very bumpy indeed for many!
  11. Cameron-Clegg need to hold their nerve and drive through really deep cutting measures before the middle of the parliament.
    They'll be unpopular then anyway so no real loss, and the benefits of the cuts should pull through in time for the next general election in 5 years time.
  12. Its good to see the cuts being driven in. I for one am prepared for tougher times.
    Would I accept a pay freeze for three years?? Yes probably.
  13. Pay freeze? Many of us already have, nobody where I work has had a pay rise in the last three years. Can't see one coming anytime soon either.

    I'm quite prepared for 25-30% spending cuts, as long as tax rises are avoided.
    The long and short of it is that the taxpayer doesn't have any more cash to give to the treasury. Raise taxes and an awful lot of people are going to go under.

    The options now are limited. Increasing the tax burden will kill off any hope of growth. Tax redutions might help stimulate the economy, particularly fuel duty.

    The only real option is to reduce public spening on a massive scale, the 1% we have seen today is just pissing in the wind.
  14. To be fair when the UK is in dire financial stook we 'all' have to make sacrifices to get through the tough times which lay ahead, we have'nt reached the stage of rioting in the streets due to radical cuts but discontent & strikes will IMO become more regular,

    SF: I really hope C & C can hold their nerve to achieve their aim in 5 years but the realist in me says longer possibly.
  15. OK, so we as a country owe some £165Bn. To who?

    Cos I want to go to that country so that all the money the world owes comes flooding in then I wouldn't have to pay any tax at all. Come to think of it, I wouldn't have to worry about work either.

    Come on then, own up. Which country is it? Have we been borrowing from Papua New Guinea or Ethiopia on the quiet?