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Osborne Orders Whitehall To Draw Up Plans For 40% Cuts

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http://www.theguardian.com/society/2015/jul/21/spending-review-george-osborne-20bn-savings-clear-deficit

George Osborne has ordered government departments to plan ways to cut up to 40% from their budgets by 2019-20 in a bid to find an additional £20bn savings in public spending.

Government must “take a step back and think about the shape of the state”, finding ways to “deliver more with less”, the chancellor said.

Letters will be sent to the head of every department that does not have ringfenced funding, asking them to model two scenarios of 25% and 40% of real-terms savings by 2019-20, the same levels of reduction requested before the 2010 spending review.

“When it comes to building a Britain that lives within its means, we need to finish the job,” Osborne told parliament on Tuesday, repeating the government’s aim to clear the deficit by 2019-2020.

In the summer budget earlier this month, Osborne set out £12bn of savings from welfare and £5bn from changes to the tax system, which he said would deliver half of the money needed to clear the deficit.

Staggering, although the interest payments for the hundreds of billions borrowed needs to be met and if interest rates go up those service costs are going to get higher, clearly he needs to cut to meet borrowing costs.

The plebs get less service and the country gives billions in welfare payments to the banking system.

I wonder what a 40% cut will do to GDP, it would be a massive job cull but I suppose paying out unemployment benefit rather than wages is a great save.

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There may be trouble ahead...

..there is always trouble ahead ..the key is do we have the right people to manage it ....the current is better than the alternative ...but we must continue to seek strong, stronger and the strongest leaders as we look ahead........ :rolleyes:

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They have to work both sides of the equation.

Try and raise more taxation revenue, and take the scissors to spending.

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The plebs get less service and the country gives billions in welfare payments to the banking system.

I'm missing something here, what welfare payments are the banks getting right now?

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http://www.theguardian.com/society/2015/jul/21/spending-review-george-osborne-20bn-savings-clear-deficit

Staggering, although the interest payments for the hundreds of billions borrowed needs to be met and if interest rates go up those service costs are going to get higher, clearly he needs to cut to meet borrowing costs.

The plebs get less service and the country gives billions in welfare payments to the banking system.

I wonder what a 40% cut will do to GDP, it would be a massive job cull but I suppose paying out unemployment benefit rather than wages is a great save.

At the moment HMRC call centres are failing to pick up the phone on a staggering 32% of telephone enquiries.

http://hmrcisshite.blogspot.co.uk/2015/07/hmrcs-dismal-performance.html

Another 40% of cuts will mean that nearly two thirds of calls may go unanswered. At what point does the collapse of public administration render Britain a failed state. No wonder Osborne wants HMRC to have the power to raid everyone's bank account.

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If it's anything like his first Autumn Statement (in 2010) then it will be leaked a few days before the statement that the he has decided he can make smaller departmental cuts (say 25% rather than 40%) but only if he makes further cuts to benefits.

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At the moment HMRC call centres are failing to pick up the phone on a staggering 32% of telephone enquiries.

http://hmrcisshite.blogspot.co.uk/2015/07/hmrcs-dismal-performance.html

Another 40% of cuts will mean that nearly two thirds of calls may go unanswered. At what point does the collapse of public administration render Britain a failed state. No wonder Osborne wants HMRC to have the power to raid everyone's bank account.

May be a blessing in disguise. On the one occasion I spoke to someone there, they had no more idea what the clumsy wording on one of their forms meant than I did.

On the wider point of 40% cuts - there is surely going to be a point when people wonder what exactly they are contributing all of this tax, NI etc for.

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I'm missing something here, what welfare payments are the banks getting right now?

Government borrowing, debt and debt interest - Parliament

Interest repayments in 2007/08 £31.2bn

Interest repayments in 2013/14 £48.7bn

Forecast by 2019/2020 to be £58.5bn, no idea what interest rate they are basing this prediction on. So Osborne over the next 5 years needs to increase either taxes or cut services by £10bn just to make the welfare payments to our banker friends.

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