Deficit Reduction?
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Discussion

Fittster

Original Poster:

20,120 posts

243 months

Friday 27th May 2011
quotequote all
Reading PH would give the impression that the Blue ties are reducing the deficit, however they seem to like spending just as much as the Red ties.

"The April figures for public borrowing were a new high for April. The government borrowed an extra £10 billion. They explained that this was more than April 2010 because in that month the government received the one off £3.5 billion tax on the banks. This has been replaced by a regular tax which does not come in in one lump.

What the detailed numbers show is that the main reason for the extra borrowing in April was extra spending. Public spending rose by £2.6 billion or 5% compared to the same month a year ago. Revenues were £42.9 billion in April 2011, compared to £43.2 billion in April 2010. In other words £3.2 billion of the £3.5 billion one off bank tax was replaced by other tax increases imposed since. Extra public spending is a far bigger cause of higher borrowing than revenue decline in these figures."

http://www.johnredwoodsdiary.com/2011/05/26/how-is...






Caulkhead

4,938 posts

187 months

Friday 27th May 2011
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The blue ties are doing as much as a coalition govt will allow them to and although it's not as much as some of us would like, it's far more than the red ties would be doing. Of course none of this is of interest to you, because you want to play a different game entirely that's never going to happen.

Halb

53,012 posts

213 months

Friday 27th May 2011
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Things aren't going to improve though are they. The libertarian utopia will never happen.

don4l

10,058 posts

206 months

Friday 27th May 2011
quotequote all
Caulkhead said:
The blue ties are doing as much as a coalition govt will allow them to and although it's not as much as some of us would like, it's far more than the red ties would be doing. Of course none of this is of interest to you, because you want to play a different game entirely that's never going to happen.
Rubbish!

Cameron is a socialist.

This has sod all to do with "coalition".

Has Nick Clegg demanded that we borrow money to finance an ever increasing Foreign Aid budget? No, he hasn't.

Don
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Caulkhead

4,938 posts

187 months

Friday 27th May 2011
quotequote all
don4l said:
Caulkhead said:
The blue ties are doing as much as a coalition govt will allow them to and although it's not as much as some of us would like, it's far more than the red ties would be doing. Of course none of this is of interest to you, because you want to play a different game entirely that's never going to happen.
Rubbish!

Cameron is a socialist.

This has sod all to do with "coalition".

Has Nick Clegg demanded that we borrow money to finance an ever increasing Foreign Aid budget? No, he hasn't.

Don
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If you think foreign aid is a socialist pursuit, you don't know what foreign aid payments are made for.

F93

575 posts

213 months

Friday 27th May 2011
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they still have to borrow, you can't cut £200 billion from a £700 billion budget just like that, it has to be gradual.

And anyway, even by 2015 we'll still have a humungous budget deficit, all the coalition can do (and is doing) is get rid of the structural deficit, ie the shortfall between income and expenditure...

Labour's nice little war chest to leave with the country for 20 years.

DJRC

23,563 posts

266 months

Saturday 28th May 2011
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Wasnt it part of the initial plan and annoucement that spending would still rise initially?

Im sure that was all in the open and discussed back in the day.

cymtriks

4,561 posts

275 months

Saturday 28th May 2011
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F93 said:
they still have to borrow, you can't cut £200 billion from a £700 billion budget just like that, it has to be gradual.
Huge cuts could be made by simply saying "if we are currently paying for X then that payment will be frozen. If any new X comes along then it will flat rate only / single payment only / we won't pay it"

For X start with benefits. It's the biggest single section of the budget by far and by cutting this way no one currently making a claim would be worse off. A system based on flat rates or single payments would be a lot simpler than our current obsession with means testing thus cutting a huge additional cost of paperwork while making it easier to claim.

If that last sentence strikes you as odd just consider that many people are far better off on benefits purely because of means testing, everyone trying to get back on their own feet is penalised by means testing and surely we should never have a system "for the needy" that puts so many barriers in the way of the needy claiming anything at all. Not long ago I helped an elderly relative fill in 80 (eighty) pages of forms just to get a bit of money for a home help to pop round twice a week, she could barely complete the first page. In the end we called social services to help and they sent someone round. The first thing he did was open his lap top! Anyone who thinks that means testing and making it harder to claim is the way forwards needs their head testing.

Compulsory 9 to 5 job club or workfare would provide help or experience respectively for those willing to try and mysteriously reduce the total number of claimants overnight.

After benefits do the same for all the other big cheque expenditures.

The current cuts seem to be a highly bureaucratic muddle of little bits here and little bits there with certain vested interests deliberately making the effects felt harder than they need to be.

JagLover

46,817 posts

265 months

Saturday 28th May 2011
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Part of the increase in spending is debt interest, which will continue to rise as long as we are adding to the debt, cuts are needed elsewhere merely for spending to remain at the same level.