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Osborne Raises His Axe: Cuts Could Top 20%

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Osborne raises his axe: Cuts could top 20%, but public will get a say in where they fall in 'once-in-a-generation' reassessment

By James Chapman

Middle-class benefit payments and pensions for millions of public sector workers are to be hit by unprecedented spending cuts that may top 20 per cent.

Chancellor George Osborne has laid the ground for the most drastic cuts since World War II, with at least four years of pain to pay back the unprecedented debts left behind by Labour.

He is expected to slash as much as £ 60billion from annual expenditure, although figures will not be clear until the autumn.

But even as the draconian measures were being unveiled, a leading credit agency was casting doubt on whether they would be enough.

A report from Fitch said debt had risen faster here than in any other country with a similar international credit rating and warned that Britain faces a 'formidable' challenge.

It suggested the UK's £156billion deficit means it is second only to Ireland in terms of the necessary cuts - with Greece, Portugal and Spain all in a better position.

Economists said they feared the agency was preparing to downgrade the UK credit rating, a move which would push the cost of government borrowing higher.

The Coalition will discuss its plans for cuts in aseries of public consultation meetings around the country over the summer.

Mr Osbourne has singled out tax credits and social security payments - and refused to rule out means-testing child benefit.

Entire areas of public sector activity will be handed to businesses, charities or citizens in a 'once-in-a-generation' reassessment of what the state can afford.

As well as slashing the budgets of government departments, reviews will be held into council tax, legal aid, the date at which the state pension age should start to rise to 66, tuition fees and social care.

Mr Osborne told the Cabinet: 'The challenge that faces us is bigger than any British government has faced in peacetime.'

He reminded colleagues that independent economists had forecast budget cuts of between 15 and 20 per cent in most departments under Labour's own plans. The Coalition is committed to reducing the deficit even more quickly.

The Chancellor later appeared before MPs to kick-start an austerity programme that will last the whole Parliament.

The Treasury traditionally sets spending limits for three years. But Mr Osborne has launched a fouryear review in which every Cabinet minister will have to justify to a 'star chamber' of senior colleagues every pound they want to use.

Mr Osborne said that without urgent action, interest rates would rise - hitting millions with higher mortgage payments and pushing up unemployment.

'This is the great national challenge of our generation: after years of waste, debt and irresponsibility, to get Britain to live within its means,' he said.

Read more: http://www.dailymail.co.uk/news/article-1285134/George-Osbornes-cuts-20--public-say-fall-generation-reassessment.html#ixzz0qKbFQKoI

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the best way to make property affordable to to repeal all planning laws.

Yes, because that will be really nice. Especially when I come and build an ugly shed in your back garden.

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Large, hard and deep is needed - And Across the board:

Jobs, public sector wages, and entitlements !

Also - they need to get everyone to share the pain :

And that means a bump up in Capital Gains on 2nd homes.

This is the best way to make property affordable again, for owner occupiers

..right now after what Shapps said yesterday? I am not sure if it's going to work. Sorry. ConLib are about to inflate HPI somehow soon. :ph34r:

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no kind of cuts can prevent the inevitable

a complete & total melt down cgnao style

all these governments are the same glove puppets

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Large, hard and deep is needed - And Across the board:

Jobs, public sector wages, and entitlements !

Also - they need to get everyone to share the pain :

And that means a bump up in Capital Gains on 2nd homes.

This is the best way to make property affordable again, for owner occupiers

you cant cut entitlement.

these people only have that as a reason to live.

they are ENTITLED to a 4x4 for the wife in the drive. they are ENTITLED to pay scales PLUS increases annually. they are ENTITLED to require talented people to be excluded because they have no "qualies".

the list goes on.

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youd have to sort out the bankers cartel at the same time

Well, I'm sure that's what most people would want.

I'm just trying to imagine the Tories actually doing it.

Nnnnngggghhhh!

No, sorry, can't.

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The cuts have already started in most government departments, imposed internally by the overpaid mandarins who are firmly in line for the chop (those in charge earning more than Cameroon).

Because they are afraid of losing their fat cat jobs soon, senior civil servants and quango heads have invented a new phrase, trumpeting loudly that they are "cost neutral", and have rushed to launch internal cost cutting measures - arguing the case to save their own necks that they save more than their own salaries cost.

An example is my ex gov department the UK Border Agency - enforcement staff have suffered earnings cuts of 20%+ in the last months, with all weekend working (without exceptional written arguments) banned - which saves salary premium payments for sats/suns and bank holiday working. So there is little or no chance of illegal immigrants' homes or places of employment being raided on a weekend - illegal foreign lap dancers and restaurant workers etc can breath easily at their weekend jobs. The unions could not intervene because guaranteed weekend working (and the extra wonga) is not an entitlement. (As an aside I always recall that sickness rates would collapse on weekends and colleagues would crawl into work - even when genuinely ill - rather than lose double time on sundays or bank hols - working on a bank holiday doubles your pay AND earns you 1 extra paid leave day...).

The latest edict of the last few weeks is to ban all colour printing in the offices, without exceptional requirement, for which a written case must be submitted in advance to a manager (by email usually). Back in the boom years we used to change office furniture every couple of years, junking the perfectly good stuff in skips out back (which staff would then take home - I enjoyed 6 years of bottom pleasure from one excellent swivel chair I took from a skip) - such waste used to make my skin crawl and had to stop, but back in those days managers were instructed to go on a spending splurge and to blow money towards the end of the treasury budget year so they could argue for increased funding the following year. Meanwhile, while public servants were sitting on new chairs every 2 years and colour printing with gay abandon, old folks had to wait for hip replacements - hence I rather like the idea of tough and deep cuts (because I am out of it I guess!).

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The cuts have already started in most government departments, imposed internally by the overpaid mandarins who are firmly in line for the chop (those in charge earning more than Cameroon).

Because they are afraid of losing their fat cat jobs soon, senior civil servants and quango heads have invented a new phrase, trumpeting loudly that they are "cost neutral", and have rushed to launch internal cost cutting measures - arguing the case to save their own necks that they save more than their own salaries cost.

An example is my ex gov department the UK Border Agency - enforcement staff have suffered earnings cuts of 20%+ in the last months, with all weekend working (without exceptional written arguments) banned - which saves salary premium payments for sats/suns and bank holiday working. So there is little or no chance of illegal immigrants' homes or places of employment being raided on a weekend - illegal foreign lap dancers and restaurant workers etc can breath easily at their weekend jobs. The unions could not intervene because guaranteed weekend working (and the extra wonga) is not an entitlement. (As an aside I always recall that sickness rates would collapse on weekends and colleagues would crawl into work - even when genuinely ill - rather than lose double time on sundays or bank hols - working on a bank holiday doubles your pay AND earns you 1 extra paid leave day...).

The latest edict of the last few weeks is to ban all colour printing in the offices, without exceptional requirement, for which a written case must be submitted in advance to a manager (by email usually). Back in the boom years we used to change office furniture every couple of years, junking the perfectly good stuff in skips out back (which staff would then take home - I enjoyed 6 years of bottom pleasure from one excellent swivel chair I took from a skip) - such waste used to make my skin crawl and had to stop, but back in those days managers were instructed to go on a spending splurge and to blow money towards the end of the treasury budget year so they could argue for increased funding the following year. Meanwhile, while public servants were sitting on new chairs every 2 years and colour printing with gay abandon, old folks had to wait for hip replacements - hence I rather like the idea of tough and deep cuts (because I am out of it I guess!).

+1

‘Restructure’ where I’m at. Saving some 2% of expenditure, strangely equal to the amount of ‘the exec’.

If it’s ten times that needed, we may as well shut.

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Yes, because that will be really nice. Especially when I come and build an ugly shed in your back garden.

I wonder. If land is cheap, people generally build bigger and nicer homes. It would also reduce the power of the big builders. I think reducing planning restrictions, hence lowering land costs, is likely to lead to better housing than the rubbish that is squeezed onto tiny blocks now.

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Caribbean Beauty

Haven't seen one of your tourism market updates for a while. They were very interesting. Hope you are still hanging in there.

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Caribbean Beauty

Haven't seen one of your tourism market updates for a while. They were very interesting. Hope you are still hanging in there.

Thanks OM. Here is my latest update:

After the awesome 90% collapse in my little internet company's Caribbean sales from 2007 through to autumn 2009, the stimulus money/ongoing low interest rates/realisation that life goes on and travel is nice/the hellish winter, caused a minor boom in sales last winter - eg my February 2010 sales were triple what they were YOY.

Then after easter, with the damage caused by the ash clouds followed by the election followed by the renewed threats to folks' incomes by the new gov, sales have dropped off a cliff again. It is just like the post Lehman brothers collapse, collapse, all over again! The annoying thing is that my insurance policy was always my right to apply for reinstatement back to my UKBA job, but with the freeze on recruitment in the civil service my last lifeboat has gone (excluding child tax credits which are paying our bills, surely these are safe.......errm, hang on...).

How is life with you?

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no, even more extortion will only make things worse.

the best way to make property affordable to to repeal all planning laws.

That's not getting rid of extortion, it's just confining extorting power to a particular group

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Entire areas of public sector activity will be handed to businesses, charities or citizens in a 'once-in-a-generation' reassessment of what the state can afford.

It would be nice to see some actual examples of where public sector activity has been 'handed over' in this way and actually gone down in overall cost whilst improving. It's generally the opposite..

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no, even more extortion will only make things worse.

the best way to make property affordable to to repeal all planning laws.

Welcome to your world:

eight-inc.jpg

Welcome to your repealed planning law housing.

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Yes, because that will be really nice. Especially when I come and build an ugly shed in your back garden.

His back garden belows to him, you can't build in it. And why would you when you could build in a field in the coutnryside?

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It would be nice to see some actual examples of where public sector activity has been 'handed over' in this way and actually gone down in overall cost whilst improving. It's generally the opposite..

Quite so. And where is the growth strategy. This is just displacement.

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Yes, because that will be really nice. Especially when I come and build an ugly shed in your back garden.

Have you ever noticed what a beautiful country England is. Lovely peaceful villages with some fabulous architecture.

When was this "perfect england" carved out...before the planning laws.

SInce planning was introduced England has before full of concrete housing blocks, shoe box houses, tiny gardens, appauling build quality, appauling design, appauling architecture.

Planning is the problem.

If you did build a big ugly shed in your garden, a) it wouldnt look any worse than some of the new builds and B) it would be bigger :lol c) it would be a fraction of the cost and d) you'd be proud to call it your home, because you built it.

We really cant do any worse than the planners...the proof being...before planning we did much much much much much better.

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Have you ever noticed what a beautiful country England is. Lovely peaceful villages with some fabulous architecture.

When was this "perfect england" carved out...before the planning laws.

The local landowning bigwig *was* the planning law, back then. He had an incentive not to mess up his estate, or lose swathes of his productive farmland.

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Have you ever noticed what a beautiful country England is. Lovely peaceful villages with some fabulous architecture.

When was this "perfect england" carved out...before the planning laws.

And virtually no social problems

If you discount the problems of the millions of unimportant people who lived in cellars and coal bunkers

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The local landowning bigwig *was* the planning law, back then. He had an incentive not to mess up his estate, or lose swathes of his productive farmland.

His option of excluding the rest of the human race meant he got to externalise costs

Everything was fine on his estate

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His option of excluding the rest of the human race meant he got to externalise costs

Everything was fine on his estate

So, at last, we have a solution to the nations problems.

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So, at last, we have a solution to the nations problems.

Yep - lock the landless peasants in little boxes

Then sit back and enjoy your view of the sweeping countryside

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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