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Royal Mail Sell Off To Pay Down The National Debt! And Spending Cuts

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http://www.bbc.co.uk/news/uk-politics-33004664

The government's remaining 30% stake in the Royal Mail is to be sold and £3bn cut from government spending this year, George Osborne has said.

The chancellor said the Royal Mail shares money - valued at £1.5bn - would be used to pay down the national debt.

The £3bn in cuts come ahead of further reductions to be announced in July.

The NHS, schools and overseas aid are protected from cuts - but other departments such as the Home Office and MoD will have to find savings.

Labour accused Mr Osborne of "ripping up" his long term economic plan by springing the announcement on MPs.

The SNP said the move "poses real danger to the postal service and, in particular, the universal service obligation which is of huge importance to Scotland".

..

Here is a full list of the departmental cuts announced by Mr Osborne:

  • Education non-schools - £450m
  • Health non-NHS - £200m
  • Transport inc. King's Cross property - £545m
  • Communities - £230m
  • Business, Innovation and Skills - £450m
  • Home Office £30m
  • Justice - £249m
  • Defence - £500m
  • Foreign and Commonwealth Office - £20m
  • Energy and Climate Change - £70m
  • Environment, Food and Rural Affairs - £83m
  • Culture, Media and Sport - £30m
  • Work and Pensions - £105m
  • HM Revenue and Customs - £80m
  • HM Treasury - £7m
  • Cabinet Office - £17m

As this doesn't eliminate the deficit, Osbourne will be paying off £0 the debt.

It says a lot about the quality of our politicians that this type of statement goes unchallenged and this twunk gets to state this b0110cks.

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http://www.bbc.co.uk/news/uk-politics-33004664

As this doesn't eliminate the deficit, Osbourne will be paying off £0 the debt.

It says a lot about the quality of our politicians that this type of statement goes unchallenged and this twunk gets to state this b0110cks.

That lot doesn't add up to £12B yet. Plenty more "work" to be done...

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Royal Mail will most likely end up being bought by Amazon, sans any legacy pension liability when it's deemed politically acceptable.

Cost savings to HMRC is an interesting one.

Edited by SNACR

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That lot doesn't add up to £12B yet. Plenty more "work" to be done...

Plus many of these are one-off "cuts" that can't be repeated. So what's he going to cut in 2016?

Edited by subspace

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Just cut foreign aid FFS, half the population is drowning, barely anything left to cut and we have this sacred £10bn giveaway to countries with nuclear weapons and space missions...sick and tired of it.

So what if the Greens get their knickers in a twist, we've been down the road of writing cheques to all and sundry and it hasn't got us anywhere.

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The public sector asset i want them to see that would make a dent in the debt is the BBC.

ITV's current market value is £10.8BN, surely with the BBC's radio stations, endless channels and global brand name it'd be worth many times that.

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The public sector asset i want them to see that would make a dent in the debt is the BBC.

ITV's current market value is £10.8BN, surely with the BBC's radio stations, endless channels and global brand name it'd be worth many times that.

Not sure about that, if the BBC was ad supported suddenly the price of ads would likely collapse as I doubt budgets would stretch to playing ads on BBC, ITV, SKY etc....

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£3Bn is a piss in the ocean - the UK pays £35Bn in interest alone on its debt burden.....per year. So....just £32Bn left of interest to pay off then. And the £1,500,000,000 debt pile remains the same size.....sorry, no....getting bigger each year. Still, the common thinking these days is that infinite debt is a good thing....until it isn't.

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Not sure about that, if the BBC was ad supported suddenly the price of ads would likely collapse as I doubt budgets would stretch to playing ads on BBC, ITV, SKY etc....

But ITV is doing OK with the proliferation of TV channels, however many million viewers they'll charge accordingly.

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The last time the Royal Mail there was a whiff of scandal with associates of the the little O making a fast buck. Sadly, the electorate have delivered the biggest get rich quick scheme for the 1% in decades. Carte blanche and a thirst for blood. Couldn't believe the news on how the little O was best known as the deficit reduction chancellor! National debt now over £1.5t (from £800b in 2010)

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Just cut foreign aid FFS, half the population is drowning, barely anything left to cut and we have this sacred £10bn giveaway to countries with nuclear weapons and space missions...sick and tired of it.

So what if the Greens get their knickers in a twist, we've been down the road of writing cheques to all and sundry and it hasn't got us anywhere.

Foreign aid is a direct subsidy to UK exporters.

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Can someone please explain to my very simple mind why you would want to sell an asset with a 4% yield to pay down a debt with 0.5% interest - and how can you call this saving money?

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Can someone please explain to my very simple mind why you would want to sell an asset with a 4% yield to pay down a debt with 0.5% interest - and how can you call this saving money?

I think bonds are more like 4% nominal rate.

And they arent selling the pension liability....of course, who would want it...so its actually a lose lose, but Osbourne is of course paying down the national debt...truth doesnt matter when the listener isnt listening.

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This effing sucks!

How long did it take for our parents and Grand parents to build these services for the good of all?

And now to be sold to get a sum that is a drop in the ocean....sold to the 1% as well.

The Thatcherite process of selling off the family silver is all but over, it cannot save us from an inevitable event in the mid term.

This country cannot afford the standard of living that has become the expected norm by its citizens...someone has to state that at some time.

At some point the world is going to suddenly change brutally for many millions in the UK...Ctl+Alt+Del.

If we do not bring it on in a controlled manner it will arrive in an un controlled manner all the same.

You cannot run a country where the majority are net beneficiaries rather than net contributors.

Its undemocratic, no wonder the banks have so much sway in the UK...they are the contributors.

People neednt starve but they neednt be kept in clover in a 4 bed semi in the leafy suburbs either...the issue of the massive social protection budget must be addressed or we and subsequent generations will never be free of this debt let alone the deficit.

Privileges are not rights.

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So a 30% share in Royal Mail - all those vans, all those trucks, all those buildings & machinery and all the work done by all those posties

Well, that is worth £1.5bn

In the last financial year, the deficit was £87.7 billion, so the proposed Royal Mail sale would cover that for nearly a whole week.

As for paying down the debt, which is currently £1,487.7bn (80.4% GDP). Well, the sentiment is sound, but if ever the phrase pi55ing in the wind was apt, this is it.

http://ons.gov.uk/ons/rel/psa/public-sector-finances/april-2015/sum-public-sector-finances--april-2015.html

Edited by pipllman

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Foreign aid is a direct subsidy to UK exporters.

We could only wish the above, even though I am fed up with government subsidising UK private interests.

More likely it is UK regime subsidising corrupt and dictatorial regimes around the world.

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We could only wish the above, even though I am fed up with government subsidising UK private interests.

More likely it is UK regime subsidising corrupt and dictatorial regimes around the world.

yah, that too...but they spend their £££s with us.

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My Grandad was a postman in the 1920s having served in the first world war.

He bought, on a single salary, an end of terrace house, 3 bedroom, which he and my gran lived in to death, in Ilford.

The place still stands.

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