Chancellor George Osborne Set To Turbo-Charge Government Spending Cuts!
Set free of the shackles and restraints placed on him by their Liberal Democrat partners in the last coalition government, Chancellor of the Exchequer George Osborne is acting like a caged Canary that suddenly finds the door left wide-open after 5 years of captivity!
A recent Guardian Article asserts that Osborne is about to bring forward an extra 13bn pounds of departmental savings in addition to the 12bn welfare cuts that were promised but never detailed in the run-up to the 2015 General Election.
These welfare cuts are seriously needed if he is to reduce the deficit to zero before the 2020 election. What’s more, and to be fair to Osborne, the general public were not only informed of these impending cuts to welfare, but they also actually voted for them!
We have been promised a budget surplus by 2019 and he has to make inroads into the 90bn pound structural deficit as soon as possible. However this extra 13 billion pounds savings plan, to be implemented across all non-ring-fenced departments, has been brought forward and will begin in earnest.
Clearly the left wing parties will be outraged, they are all anti-austerity for various reasons, but mainly for their own self-interest – cutting civil servants and in some cases whole departments deprives the civil service unions of valuable members and subscriptions. But for the general public it means having to pay less income tax of which large chunks go toward paying interest on our national debts of over 1.5 trillion pounds. In their defence, the left argue that the interest charges on that borrowed money is such a low percentage – due to cheap money and Quantitative Easing – it would be better to fund those civil servants and many other projects. But Osborne knows that low-interest rates cannot last forever, he is fixing the roof whilst the sun is shining – we cannot be certain that another crash will not happen in the next 5 years, stock markets are over inflated, cheap money is helping the big corporations to buy back their shares, creating a bubble in share values – Osborne talks often about his “Long-Term Economic Plan” – but it isn’t just rhetoric – he really does have one and these significant cuts are the proof.
In my next article I shall detail George’s alternative plan to wipe-out the deficit and a third of the national debt in one swift sleight of the hand *intriguing yes?