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Spending Review Leaks

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Well as usual there have been numerous leaks regarding tomorrow's spending review. Is all the bad news out? or would anyone care to speculate on any possible bombshells that haven't had any kind of mention yet?

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FTSE 100 5747.27+0.08%

FTSE still rising so the cuts must be being seen as somewhat of a damp squibb. I.e., what they "hope" to cut sometime in the future while the party plays on.

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Well as usual there have been numerous leaks regarding tomorrow's spending review. Is all the bad news out? or would anyone care to speculate on any possible bombshells that haven't had any kind of mention yet?

Synopsis of cuts please.

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FTSE still rising so the cuts must be being seen as somewhat of a damp squibb.

Conversely, maybe the market is reacting to lots of cuts finally dragging the country out of the sh1t

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Well as usual there have been numerous leaks regarding tomorrow's spending review. Is all the bad news out? or would anyone care to speculate on any possible bombshells that haven't had any kind of mention yet?

It seems that between 30-40% of the proposed total value of the cuts have so far come into the public domain (officially or unofficially) so there will have to be some bombshells still out there. I don't think that everything will come out tomorrow as the detail of the plans won't have been fully sorted, only the top level numbers and any big projects axed.

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Synopsis of cuts please.

There have been so many leaks that a synopsis would be somewhat difficult and a list lenghty.

We haven't heard too much from the transport department, I suspect there may be some bad news to come for them and maybe some new charges for taxpayers.

The 'success' of the London congestion charge cannot have gone unnoticed, maybe some extension of that or the introduction of road tolls etc.

edit spelling

Edited by hobdoll

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Synopsis: this is what I can remember.

Tax Rises

  • VAT to 20% in January
  • NI up 1% in April
  • Pension tax relief cut at higher end

Spending Cuts

  • Child benefit cut for people earning >£44k
  • Tougher rules for incapacity benefit
  • Caps on housing benefit
  • Rumoured 80% cut in HEFCE teaching budget for universities.
  • Ditto 25% for research.
  • Cuts to the armed forces as announced yesterday
  • 6,000 prison places cut
  • 60,000 fewer police officers (rumoured)
  • Severn Barrage axed
  • TV licence frozen

Spending Preserved / New Spending Announced

  • No cuts to overall NHS budget
  • Restoring earnings link to state pensions, albeit at CPI rather than RPI
  • £7bn on support for 'disadvantaged' children in education, as announced by Clegg last week
  • New nuclear power stations
  • Crossrail to go ahead.
  • Cuts elsewhere in rail infrastructure, to be made up by fare hikes
Edited by The Ayatollah Buggeri

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Oh, goody, Crossrail to go ahead.

The only rail project likely to be completed in the foreseeable future and it is useful to City workers living West of London and nobody else at all.

Excellent signal for where this Goverments priorities lie. Same place as the last one's.

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Synopsis: this is what I can remember.

Thanks, that's very interesting to see it all together. Would be nice to keep that up to date after tomorrow.

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Synopsis: this is what I can remember.

Tax Rises

  • VAT to 20% in January
  • NI up 1% in April
  • Pension tax relief cut at higher end

Spending Cuts

  • Child benefit cut for people earning >£44k
  • Tougher rules for incapacity benefit
  • Caps on housing benefit
  • Rumoured 80% cut in HEFCE teaching budget for universities.
  • Ditto 25% for research.
  • Cuts to the armed forces as announced yesterday
  • 6,000 prison places cut
  • 60,000 fewer police officers (rumoured)
  • Severn Barrage axed
  • TV licence frozen

Spending Preserved / New Spending Announced

  • No cuts to overall NHS budget
  • Restoring earnings link to state pensions, albeit at CPI rather than RPI
  • £7bn on support for 'disadvantaged' children in education, as announced by Clegg last week
  • New nuclear power stations
  • Crossrail to go ahead.
  • Cuts elsewhere in rail infrastructure, to be made up by fare hikes

Thanks

Great post

It makes you realise how they manage feeding us bad news when you see it set out like that.

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  • Child benefit cut for people earning >£44k
  • Tougher rules for incapacity benefit
  • Caps on housing benefit
  • Rumoured 80% cut in HEFCE teaching budget for universities.
  • Ditto 25% for research.
  • Cuts to the armed forces as announced yesterday
  • 6,000 prison places cut
  • 60,000 fewer police officers (rumoured)
  • Severn Barrage axed
  • TV licence frozen

Spending Preserved / New Spending Announced

The severn barrage hasn't been axed because it was never going to be built. All that has happened is HMG has decided not to continute to spend a few hundred thousand producuing a report that says this.

tim

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Oh, goody, Crossrail to go ahead.

The only rail project likely to be completed in the foreseeable future and it is useful to City workers living West of London and nobody else at all.

Excellent signal for where this Goverments priorities lie. Same place as the last one's.

Probably useful to a lot of people living in London who will never set foot on it as it will reduce overcrowding on other lines.

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Thanks

Great post

It makes you realise how they manage feeding us bad news when you see it set out like that.

i think its partly down to our media and our docile public too.

An item is announced, kicks up a furore, is done to death in the papers and on the TV, then the next day they are on to the next one.

Child benefit cuts seem an age ago.

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FTSE 100 5747.27+0.08%

FTSE still rising so the cuts must be being seen as somewhat of a damp squibb. I

Gone negative now, down 18 points and falling.

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Synopsis: this is what I can remember.

Tax Rises

  • VAT to 20% in January
  • NI up 1% in April
  • Pension tax relief cut at higher end

Spending Cuts

  • Child benefit cut for people earning >£44k
  • Tougher rules for incapacity benefit
  • Caps on housing benefit
  • Rumoured 80% cut in HEFCE teaching budget for universities.
  • Ditto 25% for research.
  • Cuts to the armed forces as announced yesterday
  • 6,000 prison places cut
  • 60,000 fewer police officers (rumoured)
  • Severn Barrage axed
  • TV licence frozen

Spending Preserved / New Spending Announced

  • No cuts to overall NHS budget
  • Restoring earnings link to state pensions, albeit at CPI rather than RPI
  • £7bn on support for 'disadvantaged' children in education, as announced by Clegg last week
  • New nuclear power stations
  • Crossrail to go ahead.
  • Cuts elsewhere in rail infrastructure, to be made up by fare hikes

Not necessarily in this round but flagged up:

Fuel duty up again (recently & Jan 2011)

State Pension Age raised incrementally

Greater costs/debt for university students

Public Sector pay freeze

Public Sector job cuts/recruitment Freeze

Public Sector reduced redundancy terms

Public Sector pensions likely to be reduced

Extended Low interest rates to shaft savers

Capital Gains tax increased

Prospect of further QE

Etc....Etc.....Etc

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Revised:

Tax Rises / Increased Costs of Living

  • VAT to 20% in January
  • CGT to 28% in April
  • NI up 1% in April
  • Pension tax relief cut at higher end
  • Rising state pension age
  • Rising cost of public sector pensions (i.e. bigger contributions and/or degraded benefits)
  • Extended holding of BoE interest rates artificially low and the possibility of more QE erodes savings
  • Road fuel up again in January
  • Train fares to rise resulting from reduction in public subsidy to Network Rail

Spending Cuts / Putative New Spending Abandoned

  • Child benefit cut for people earning >£44k
  • Tougher rules for incapacity benefit
  • Caps on housing benefit
  • Reduction in public sector workforce, possibly of up to 500,000
  • Drive for efficiency in public sector procurement, e.g. defence, will pull more money out of the private sector economy;
  • Rumoured 80% cut in HEFCE teaching budget for universities.
  • Ditto 25% for research.
  • Cuts to the armed forces as announced yesterday
  • 6,000 prison places cut
  • 60,000 fewer police officers (rumoured)
  • Severn Barrage will now not go ahead
  • TV licence frozen

Spending Preserved / New Spending Announced

  • No cuts to overall NHS budget
  • No cuts to EU contribution
  • No cuts to international aid budget
  • Restoring earnings link to state pensions, albeit at CPI rather than RPI
  • £7bn on support for 'disadvantaged' children in education, as announced by Clegg last week
  • New nuclear power stations
  • Crossrail to go ahead.

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[*]Train fares to rise resulting from reduction in public subsidy to Network Rail

[*]New nuclear power stations[*]Crossrail to go ahead.

I don't get how we pay for infrastructure for private companies to take the profits...

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FTSE 100 5747.27+0.08%

FTSE still rising so the cuts must be being seen as somewhat of a damp squibb. I.e., what they "hope" to cut sometime in the future while the party plays on.

Haven't you figured out yet that the stock markets are manipulated by high frequency traders and the bailout money from taxpayers? :rolleyes:

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BBC: £14bn St Athan defence academy plan axed

Plans for a £14bn defence training academy in the Vale of Glamorgan have been scrapped.

£14 BILLION? Surely shome mishtake?

I thought that, but surprisingly not.

I remember back in 2006 I read it was around £10 Billion (this was when £1 Bn was a lot of money) which at the time was more than the Olympics.

Couldnt believe it!

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I don't get how we pay for infrastructure for private companies to take the profits...

Now now, don't be cheeky or you'll be thrown off the train!

There is another even more insidious mechanism at work here - A rail link will tend to raise rents all around, and so its value is collected by one portion of the community (people who own property in the affected areas) but it is provided by everyone from their taxes. Tenants get to pay three times; once in their taxes to provide it and again in their rents to be anywhere near it and again if they buy a ticket and use it.

subsidy subsidy

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