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Move To Delay Uk Spending Cuts

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(Article may be subs only - not sure)


The Treasury is working on plans to “reprofile” spending cuts next April, spreading the pain of deficit reduction more evenly over the next few years, senior Whitehall officials have told the Financial Times.

Confronted with the difficulties of quickly cutting spending – including financial penalties for breaking contracts and redundancy costs – ministers have been forced to consider delaying some of the big savings until later in this parliament.

A decision on what is known in the Treasury as “reprofiling” the spending cuts has not yet been taken. An aide to George Osborne said on Wednesday that the spreadsheets underpinning the spending review did not factor in any reprofiling.

However, he added that he could not guarantee that the timing of the spending cuts would be exactly as laid out in June’s emergency Budget because the government needed to take a hard look at contracts and redundancy costs.

But it would not confirm that the spending review on October 20 would maintain the £23bn spending cuts in 2011-12, rising to £83bn a year cuts by 2014-15. This week it has already become clear that many of the cuts will be difficult to start in 2011-12.

The withdrawal of child benefit from higher-rate taxpayers is set to be implemented only in 2013-14. The government cannot walk away from its existing defence contracts, such as the two new aircraft carriers, without penalties. The universal credit, to replace many existing benefits, will not start until late 2013 at the earliest. And plans to introduce higher tuition fees for students will not be ready until later in the parliament.

There is no doubt that most of the £32bn of spending cuts and tax rises set for 2011-12 will still be implemented, but the fiscal consolidation might be delayed without undermining the government’s ambition to eliminate the current structural deficit before the next election, scheduled in 2015.

Didn't take too long for Mr Reality to bump into Mr Rhetoric :rolleyes:

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Yes, continuing to borrow (or as looks increasingly likely, print) massive amounts of money to throw into inefficient, wasteful public sector bodies just to keep people in a job is clearly the way to deal with a crisis caused by taking on too much debt. :rolleyes:

I can't believe that no-one before has ever figured out that we don't have to suffer the busts after a boom when all the government have to do is borrow and spend the economy back to health. Obviously they weren't as clever as modern politicians and 'economists'.

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Ah screw it, I was going to post something but I can't be ar5ed. We are just talking in circles when it comes to the UK economy.

Just ask yourself one question; what exactly will get this country back up and running again?

It is an absolute basket case.

Other countries have some competitive advantages such as; China (low cost manufacturing), India (low cost gradutate skills), German (high tech/quality export led manufacturing economy), Even bloody France seems to have the advantage low cost energy supplies (that's what you get for investing in your own infrastucture, nuclear power) and a attitude that doesn't necassarily allow any tom, dick or harry walk into their country and take over any old company they feel like...

We are going to end up working for the Chinese, seriously, I am not kidding you. It will take less than a generation. Our utulities are mostly foreign owned (they should never have been privatised. If they can be profitable for a private entity, they can be profitable for a country), United Biscuits, Cadbury, etc. etc.

We produce more cars in this country than we ever have in the past, yet we don't actually own any of the companies producing those cars. If all of the companies end up in foreign hands, where will corporate tax revenues come from?

The bloody politicians have sold us all down the river. One after another has told us they know what they are doing,,, one after another has told us we should embrace globalisation... What an unbelievable deceit.

So far, all they have proved is that they know how to line their own pockets with tax payers money, and how to **** up an economy (end of boom and bust, ha).

And bloody Merve, has his 'fingers crossed' hoping something will 'turn up'...

What an absolute shower...!!!!

I'll get me coat.

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  • 432 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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