Many people far more knowledgeable than me have commented on the recent downgrading of the UK’s credit rating from AAA to AA1 – this however is not going to stop me adding my tuppenth worth. It’s just one agency but it is a warning shot across the bows the policy being pursued by the current Government isn’t working, we’re borrowing more and there’s no growth- this is not how you reduce dept. The only way anyone reduces debt is to spend less and stop borrowing, apparently this does in fact also apply to Governments despite what various pundits have claimed in the past. Sadly the opposition’s plan seems to be pretty much identical as far as the outside world would be concerned they’d just spend money on different things and tax a different set of people – so they’re of no use either. Our alleged austerity measures haven’t reduced spending so perhaps it’s time for some real cuts, and to those that will cry out about our front line services I ask a simple question:
Do you think the Government says “take 300 nurses off the wards to meet your budget”, or do you think they say “you’re getting 5% less budget work out what you need to do”? My money would be on the latter and it’s then the civil servants and middle managers that go “well I could sack some of my mates, not get a shiny new business car and take a smaller bonus, or I could sack a load of nurses and cleaners and then claim it’s the Governments fault… hmm tricky”.
Substitute nurses for any front line service you like, of course if you’re sure there’s no excess management or any other waste in the NHS, police or anything else well then obviously it’s the Governments fault – me I suspect there may be a few too many managers, a bit too much bureaucracy, maybe a few “pilgrims” that could go and a few other savings that could be made before the front line was in any real danger. So I’m quite happy for the Government to wield the axe with vigor as we can’t afford the current rate of spending and a few manager on the dole will be cheaper than paying their wages – especially if they don’t get hugely inflated pay outs to leave. So that’s a place to start addressing spending, now to get the economy going, lets take everyone on minimum wage out of paying taxes, and ditch those tax credits that will give people more money to spend and reduce paper work. Which should help both business and those looking for work, then lets look at business taxes we want companies working here so lets make it cheaper for them after all we’re still taxing the people they employ and all the things they buy and given how much tax is currently avoided/evaded why not just set the rates down near what it’s being avoided to? After all we’re told and see how low tax regimes attract business.
Before I hand you over to a load of links to those more informed and intelligent commentators a thought for George staking your career on a rating over which you have no control and which can be set at whim by private parties who may not have their interests aligned with yours is what’s commonly known as “stupid”, oh and please no more printing money it only makes things worse. Now to those more intelligent comments:
- Iain Dale proposes ditching popularity and taking action
- Thomas Pascoe sees a silver lining
- Behing blue Eyes also suggests some strategies for George
- Toby Young wonders why Labour are celebrating
As a final thought, given our current crop of politicians the chances of them actually doing anything useful is slim to bugger all so I’d guess the rest of us are in for a deeply unpleasant time and I expect many of our great and good will start shouting that the only thing that will save us is closer integration with the EU as the best thing to do when struggling is tie a mill stone round your neck.
