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Doubt Over Tory £6Bn Cuts Plans

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http://www.telegraph.co.uk/finance/financetopics/budget/7819216/Doubt-over-Tory-6bn-cuts-plans.html

Sir Peter Gershon, who together with ex-Logica boss Martin Read, helped formulate the spending reductions which the coalition Government announced last month, warned that it would "take some time" to renegotiate contracts – one of the biggest elements of the cuts. The Treasury has pledged to save some £1.7bn simply by renegotiating existing contracts with suppliers "including immediate negotiations to achieve cost reductions from the major suppliers to government".

But Sir Peter, the efficiency adviser who previously worked for advised Gordon Brown, warned that while some projects could be scrapped now – such as the ID cards – others would take longer. "The Government moratorium on IT projects, that can happen now. You get the savings," he said. However, he added: "Renewing contracts will clearly take some time. We will get some savings this year and some in the next year. Similarly, the review on projects, it will take time. The cost that will make will be in-year, but modest, but can make an important contribution in the spending review."

The warning, which comes less than two weeks before the emergency Budget, raises questions over the ease with which the Government will be able to make savings, and implies that the money will have to be found by cutting other services. David Cameron warned earlier this week that Britons would have to accept deep and painful cuts in public spending which would affect their lives. The warning represents an early note of caution about just how feasible it will be to cut spending without inflicting pain.

But Sir Peter denied reports that the £6.2bn cuts package, masterminded by David Laws before he resigned his Treasury post, would lead to 50,000 public sector job losses. He said: "There isn't that much that the Government has announced in the £6bn savings this year that should lead to large-scale redundancies."

The Prime Minister has refused to confirm the number of public sector jobs that could be cut, but said the "vast majority of the impact" on jobs would come from the Whitehall recruitment freeze, saving £120m. Other spending cuts, outlined by the Treasury, include a £600m cull on quangos, and £1.2bn savings from ending staff travel and consultancy spend.

Still it's only what 2 weeks worth of borrowing being saved? Or not at the case may be.

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ex-Logica boss Martin Read, helped formulate the spending reductions which the coalition Government announced last month, warned that it would "take some time" to renegotiate contracts...

... the government has with Logica?

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http://www.telegraph.co.uk/finance/financetopics/budget/7819216/Doubt-over-Tory-6bn-cuts-plans.html

Still it's only what 2 weeks worth of borrowing being saved? Or not at the case may be.

By the time of the budget the government will have borrowed more than the £6 billion it is supposed to be trying to cut. :ph34r:

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I remember ALL the heavy indus getting killed off at the end of the 70's/ early 80's....................Steel mills, coal mines etc.............so WHERE the F*ck is the bad news?

When am i going to see a shed full of people getting thrown out of their goverment job?????

Mike

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I remember ALL the heavy indus getting killed off at the end of the 70's/ early 80's....................Steel mills, coal mines etc.............so WHERE the F*ck is the bad news?

When am i going to see a shed full of people getting thrown out of their goverment job?????

Mike

If they suggest the £6BN cuts will result in 50K job cuts, what's going to happen when they start talking about real money? Presumably the cuts will eventually exceed £6BN.

Edited by Minos

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If they suggest the £6BN cuts will result in 50K job cuts, what's going to happen when they start talking about real money?

It will probably be a good time to have already bought a tumbril manufactuary.

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Surely just stopping all IT projects is a bit silly.

My vested interest in this is I do IT projects for both public and private sector clients.

One of my public sector projects involves scanning in paperwork and linking it to their records management system. This had previously occupied an entire building staffed by 5. Now the building has been sold off and the staff have gone. All for about £30k of IT investment.

I've done others where I haven't seen the value admittedly but stopping all IT projects is plain crazy.

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"renegotiate contracts"

Well they shouldn't need negotiating that much

"we're paying less."

Well, exactly. It's not like the government is likely to default on the contracts so they have to be a safer prospect than most customers. I think that part of the problem is that we need people with harsh industry experience in government to help negotiate contracts.

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"renegotiate contracts"

Well they shouldn't need negotiating that much

"we're paying less."

There's such a thing as contract law. If the Government breaks a contract it can be taken to court and if it loses will have to honour the contract or pay compensation - and then there's the lawyers' fees to consider.

Could end up costing even more.

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There's such a thing as contract law. If the Government breaks a contract it can be taken to court and if it loses will have to honour the contract or pay compensation - and then there's the lawyers' fees to consider.

Could end up costing even more.

"we're paying less, or you won't be getting any further contracts" should do it. No need for lawyers.

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It will be interesting to see if the coalition actually make any significant cuts.

They seem to be having problems with 6bn let alone solving the160bn deficit.

I have a bad feeling it will be the IMF again.

The trouble is that politicians like talking and are very good at it.

There will be lots of discussion about difficult decisions but no action.

They still find it impossible to use the word cut let alone do it.

rhetoric will not get us out of this mess.

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There's such a thing as contract law. If the Government breaks a contract it can be taken to court and if it loses will have to honour the contract or pay compensation - and then there's the lawyers' fees to consider.

Could end up costing even more.

Well let them sue the ministers who approved foolish contracts.

What are they - 10 year no negotiation deals as approved by nulabour?

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Guest BetterOffOnBenefits

It will be interesting to see if the coalition actually make any significant cuts.

They seem to be having problems with 6bn let alone solving the160bn deficit.

I have a bad feeling it will be the IMF again.

The trouble is that politicians like talking and are very good at it.

There will be lots of discussion about difficult decisions but no action.

They still find it impossible to use the word cut let alone do it.

rhetoric will not get us out of this mess.

It took 13 years to swell to this level.

Reckon it'll take as long if not longer to get it down

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It took 13 years to swell to this level.

Reckon it'll take as long if not longer to get it down

Time is not a luxury that we have. They need to at least halve the deficit within a year, otherwise it's game over.

Edited by Errol

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There's such a thing as contract law. If the Government breaks a contract it can be taken to court and if it loses will have to honour the contract or pay compensation - and then there's the lawyers' fees to consider.

Could end up costing even more.

The general though on this board is that people only pay taxes because the government have guns and we do not ... surely that should apply to contracts with the government.

Gov: We're reducing all contract payments, by 25% immediatly

Supplier: No your not, if you do we'll sue you in court under contract law.

Gov: We own the courts, now we're paying you less just accept it. Oh and if you want to argue about it then look at the size of my gun.

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The general though on this board is that people only pay taxes because the government have guns and we do not ... surely that should apply to contracts with the government.

Gov: We're reducing all contract payments, by 25% immediatly

Supplier: No your not, if you do we'll sue you in court under contract law.

Gov: We own the courts, now we're paying you less just accept it. Oh and if you want to argue about it then look at the size of my gun.

That only works after an Argentine style collapse.

Trying it before directly causes an Argentine collapse as all investment flees.

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But, but, but cutting £6bn was going to be so easy. Everyone knew that Labour had been spendthrift and inefficient.

Finding £6bn in efficiency savings was going to be easy peasy.

Not quite so easy, it seems.

And cutting is the easy part.

There is no leadership, no initiative on how growth from the vaunted private sector will redress our loss of GDP.

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It will be interesting to see if the coalition actually make any significant cuts.

They seem to be having problems with 6bn let alone solving the160bn deficit.

I have a bad feeling it will be the IMF again.

The trouble is that politicians like talking and are very good at it.

There will be lots of discussion about difficult decisions but no action.

They still find it impossible to use the word cut let alone do it.

rhetoric will not get us out of this mess.

My feeling the plan all along is to bring in the IMF, then the political parties can blame the IMF and Labour for the mess. Time however for doing this is running out, if this happens in 2 years time then I suspect it will be the coalition that takes the blame for being ineffective and failing to manage the problem.

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  • 146 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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