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View Full Version : UK Spending Review - Osborne to Announce 83 billion Cuts This Week



C. Flower
17-10-2010, 04:17 PM
Even Thatcher didn't wipe out the whole of the British Welfare State.

Now the decay of Britain as a manufacturing and world power is bearing down on living standards of the whole population.

Cuts are expected to be made in benefits, social housing, education and culture.

The cuts will also include some limited military cuts.

About 600,000 jobs will be lost with inevitable downward pressure on wages. This will also reduce opportunities to emigrate from ireland to work in the UK.

There is a very low level of public support for the measures and will certainly be resistance to them. There was an "open conspiracy" during the election for neither Labour not the Tories to spell out what they knew they planned to do in terms of cuts.

Health and International Aid has been "ring fenced" in contrast to Ireland. However, there is no guarantee that the Government will not be back to take them on if they succeed in round one.






BRITAIN'S Prime Minister and Chancellor have put the final touches to the most brutal public spending review in several generations amid speculation they will scrap the child benefit for over-16s.

The review, to be unveiled by Chancellor George Osborne on Wednesday, will set out how the coalition government aims to cut 83 billion ($A134 billion) from state spending to meet its goal of eliminating Britain's record public deficit within four years.

Newspaper reports yesterday suggested Mr Osborne might seek to save 2 billion by stopping the child benefit paid to teenagers who stay in education or training between the ages of 16 and 19 and by inflicting cuts on social housing, the RAF, legal aid and the prison system.

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But insiders played down claims that Justice Secretary Kenneth Clarke will be required to sell assets worth 845 million, including prisons. A leaked document obtained by The Observer suggested the Ministry of Justice would be one of the biggest losers in the review, losing 30 per cent of its 9 billion budget and facing cuts of 2.1 billion in legal aid, 198 million from civil and family courts and 93 million from criminal cases.

Treasury sources declined to discuss suggestions of further cuts to child benefits following Mr Osborne's announcement earlier this month that it would be withdrawn from parents paying higher-rate tax.

Aggravating the gloomy outlook was the announcement that rail fares could rise by up to 40 per cent over the next four years as a result of changes to subsidies.

Reports suggested that radical changes could be made to the social housing system, ending the right to a council home for life in favour of shorter tenancies.

And the Department for Work and Pensions announced a crackdown on benefit and tax credit fraud, intended to claw back some of the estimated 1.5 billion lost each year to welfare cheats.

Pressure on department spending has been increased in the final days before the comprehensive spending review by political decisions to limit the pain in the defence and education budgets.

Only the National Health Service and international aid budgets have been protected, so additional savings have had to be found elsewhere.

Prime Minister David Cameron intervened personally on behalf of the Defence Ministry after being approached by a delegation of military chiefs warning of the potential impact on troops in Afghanistan of Mr Osborne's demand for 10 per cent savings.

It is understood that Defence Secretary Liam Fox will now have to deliver cuts of about 8 per cent, which could involve manpower cuts for all three services, the loss of RAF bases and the early retirement of the Royal Navy's Harrier jump jets.

The Labour opposition will unveil its own plans for the economy today, setting out a 7 billion ''push for growth'' funded largely by levies on banks.

A poll taken against the background of government estimates that 600,000 public-sector jobs could be lost found that just 30 per cent believed sacking thousands of people was a price worth paying to balance the books, compared to 47 per cent who disagreed.


http://www.einnews.com/article.php?vid=hSsvpgKULfgRszol&v=61145EwJhJI1TrXLSCRJgvM1JV9GNhY3Q

C. Flower
22-10-2010, 11:02 AM
Details of the cuts are here

http://www.hm-treasury.gov.uk/spend_index.htm


and here.

http://www.guardian.co.uk/politics/2010/oct/20/spending-review-2010-key-points?utm_source=twitterfeed&utm_medium=twitter


Britain is borrowing one in ever four pounds spent - not that far off our own position.

The cuts will mean more than 490,000 job losses in the UK.

4 billion will be cut in the North - an enormous amount in a region that depends heavily on public spending for employment.

http://www.belfasttelegraph.co.uk/news/politics/osbornes-spending-review-axe-falls-on-northern-ireland-14982926.html (http://www.belfasttelegraph.co.uk/news/politics/osbornes-spending-review-axe-falls-on-northern-ireland-14982926.html)

No surprise that the cuts will affect the poor more than the rich.

http://www.guardian.co.uk/politics/2010/oct/20/spending-cuts-george-osborne-axe?utm_medium=twitter

morticia
22-10-2010, 08:55 PM
The old age pension in the UK is just over 400 quid a month (pre cuts), and if you still have savings, you're supposed to pay council tax on that.

Beware, all ye enthusiastic supporters of a property tax.......