Comprehensive (but totally ignorant) Spending Review

George Osborne announced the Comprehensive Spending Review yesterday, on top of earlier cuts.

So yesterday, at 12:30 on the dot, began the most devastating cuts (when added to the previous announced cuts) in post-war times. Not since the 1930's have cuts of this scale been made, the devastating results of which will become abundantly clear soon enough.

This 'slash and burn' approach is not the way to run a government. I was under the (perhaps false) impression that our government exists to represent the people and facilitate the needs of the nation by providing services and funding to it's people. It's a brief description, yes, but the no matter how you phrase it, the principal stays the same; Our government is supposed to help, and not hinder, the people both collectively AND individually. It's wrong then, in this view, to simply destroy the lives and livelihoods of individuals and families for 'the greater good'. I'd go as far as to say that there is no circumstance where 'the greater good' can be fully justified. Then again, I'm a leftist, so I would say that. In this case though, the greater good is the idea that if unemployment has to exceed 10% for a few years to reduce the deficit, then so be it.
I already made a brief point in my last post about the national debt and the deficit, and I while do agree that some cuts do need to be implemented to reduce the deficit and eventually get rid of it (over a period of time) I do not think this should be at the cost of millions of people's lives.

£7 billion was slashed from welfare, making it a total of £18 billion from welfare since they entered office on the fateful day of the formation of the coalition, the selling of the Liberal soul. That's not even melodrama. When you promise to cut tuition fees, and raise the support of hundreds of thousands of students up and down the country, then go ahead and double it and in some cases triple it, then actually - thatcounts as selling your soul to the Tory devil.
You can't scale back the welfare state to this degree, then cut 490,000 public sector jobs. You cut from one angle or the other. This pincer motion will result in mass unemployment, mass homelessness and mass general unrest up and down the United Kingdom.

Let me spell it out. Public sector workers already took a pay cut in the form of a pay freeze (inflation devaluing their pay means essentially they're taking a cut in real terms) cutting money to pension schemes whilst the pension age rises (probably up to 70 by the time I'm ready to retire, grim future) and then slashing 490,000 public sector workers, means something, yes something, WILL HAPPEN IN THE PRIVATE SECTOR TOO. Think of all the areas in the private sector that rely, in some way or another, on the public sector. If you're cutting 490,000 public sector workers, then maybe 300,000 (or possibly a lot more) will be cut in the private sector. The cuts made to other departments will result in similar knock on effects, like the department which handles housing, the housing budget has been slashed by over 60%... that's a huge cut!Especially in a time where theres already a housing shortage. Now, with that kind of budget cut, less houses will be built (an estimated 300,000). Less houses being built means less construction contracts and less money going to the construction industry. Which will result in job losses, numbered at around 280,000.
Add that to the expected 100,000 job losses as local councils make mass lay-offs due to funding shortages now.
That's now 1.17 million people added to the unemployment pool.

But again, we have to add to those numbers, this time with mass redundancies made in retail, financing and core industries. Supermarkets and fast food stores will cut staff without batting an eye when they notice their profit margins dropping rapidly as people now relying on state benefits (which have been slashed) find themselves scrimping and scraping (and possibly homeless). As a result of further decline in demand, core industries like steel will again find large scale redundancies, leading to yet more unemployed. The finance sector won't get by either, lack of consumer confidence and general lack of money means they'll be bitten by the cuts bug too. As tuition fees sky rocket, there'll be less young people in higher education, so that's an influx of young people jobless and with inadequate qualifications.

Now, I'm certainly no expert, but you tell me - how is this beneficial?

'Austerity Measures', tighten your belt, stiff upper lip, and the rest of the crap we're fed.

Laugh it up D&G, laugh it up... because we won't let it last forever.

Mr. Osborne has his little mind set on this idea that somehow, the people of Britain elected this government to tear it to shreds.

Gideon talks about these 'austerity measures' as though they are a dose of medicine that Britain has to take, only there's no sugar cube to take the edge off the bitterness. Like taking bitter medicine, I feel a lump in my throat as Gideon strips away another layer of Labour progress with each passing day.
As if he hadn't done enough damage already by squeezing the poorest in the poorest regions by revoking funding from organisations set up to spur economic growth outside the capital and it's tributaries, putting our education in jeopardy by making university education extortionately priced and by cutting money from schemes that gave young people a chance in life - Gideon is now ringing out the towel by 'reviewing over 400 tax reliefs', you know, the ones awarded to people who can barely afford to live as it is.

He justifies his cuts with 'foreign markets' and 'global investors' as well as a ridiculous amount of jargon, and excuse the crudeness, but for Christ's sake Gideon you just don't bloody get it. I'm no economist, but when I talk about Britain and it's economy, I'm talking about it's people, families, jobs. I'm sure that collectively the Tory MPs and their 'chums' could donate enough money to stop the rise in VAT or keep funding to the Future Jobs Fund.
But back on track, he needs to stop talking about his friends the bankers and start telling the truth, that he fully plans to squeeze we common people till we're dry. This absurd idea that raising VAT is in our best interests makes me wonder if he's ever even been into a high-street shop or a supermarket. I'm sure I'm not alone in saying that when things get more expensive, things you wouldn't consider every day necessities, be it by a few pence to a few pounds, I stop buying them.

My personal opinion is that he's a small and cowardly little man. But I'd voice these opinions no matter who took this approach. Of course I understand Labour would have made cuts, but not nearly as rapid as this. Being on the receiving end of the cuts, and knowing they're about to hit me personally, it feels vindictive, vengeful and like he's just trying to 'get back at labour', an approach Labour didn't take in '97 - heck they kept and used policies that were beneficial!

Mr. Osborne needs to take a good hard look in the mirror and think, am I doing this for Tories, or am I doing this for the British people? Because if it is the former, then you should not be in a position of power, and it really is as simple as that.


Thoughts and comments greatly appreciated.

Savage Cuts ignorant of regional needs

 To see the map through Tory eyes, ignore the black shaded regions.

Well, quite turbulent times we're in.
The emergency budget was announced yesterday by Gideon, and to be frank it was ignorant, smoke and mirror, damaging and ideological.

It's quickly becoming the rule of thumb that whatever Dave and Gideon tell you, believe the opposite. Apparently raising up to 20% is a fair thing to do....where as the poorest fifth of the population pay about 12% of their disposable income in VAT while the richest fifth pay about 4%.... so raising the VAT means that poorer people are paying more....that sounds fair right? I mean, after all, this is a 'progressive coalition' in Gideon's own words!

It's becoming a cliche on this blog, but.... it's just the same old Tories. Employers favoured over employees - Employers won't be paying the NI rise...however despite their earlier claim, employees will. How clever of them, only mentioning the employer so as not to draw attention to the issue.

But what worries and angers me the most is the utterly absurd claim that the load bearing for cutting the deficit will be spread evenly across the country. In the North-East 1 in 3 work in the public sector. That's a large figure, consistent with Northern Ireland and Wales. These three regions are also going to be the three to suffer most. Northern Ireland accounts for only 2% of the economy, and the North East only 3%. Cameron can encourage business all he wants, but the North East largely relies on the public sector, and is not an attractive place for investment. On top of this by throwing out Regional Development Agencies (in the North East's case - One North East) he is scrapping the very organisations that have been building and developing the private sector.
Consider this in light of the average full-time salaries in 2008:

Top three:

• London £46,462
• South East £32,819
• East £30,318

Bottom three:

• Wales £25,677
• North East £25,551
• Northern Ireland £25,550

We can see the striking difference there. When you tally up the facts; that these three regions are poorer, receive less funding, have a lower household income, suffer much higher rates of social deprivation, much more reliant on the government and public sector amongst many other things - then we can begin to see why the economic output per person is around 25% less than the UK average. Freezing public sector pay is therefore unfairly hitting the regions most dependant on public sector for jobs.


A £500 million 'super-hospital' in the North that had been in planning for 5 years and on the eve of fruition, was scrapped by Gideon, despite life expectancy and health in the north being again lower than the national average, whilst in London and the South, the wealthiest areas, two such hospitals are going ahead.



These emergency budget was aimed at striking down the poorer, and the more deprived regions. It was aimed at bolstering the private sector where the private sector flourished, and cutting the public sector where it's needed most. The budget is ignorant of regional inequality and indeed will exacerbate the problem, whilst pushing for further inequality in the distribution of wealth, tax breaks for the richer, and sly cuts in services and tax hikes for the poorer. All employers will be better off receiving tax breaks...whilst their workers are paying more and receiving less.