UK Spending Review: Osborne prepares to unveil cuts

Discussion in 'Wall St. News' started by ASusilovic, Oct 20, 2010.

  1. Chancellor George Osborne is preparing to reveal the biggest programme of cuts in the UK for decades, in his long-awaited Spending Review.

    Average budget reductions of 25% to most Whitehall departments are expected alongside welfare cuts, following months of negotiations with ministers.

    Reports suggest nearly 500,000 public sector jobs will go by 2014-15.

    On Tuesday 8% cuts to the defence budget were outlined separately in the strategic defence review.

    Overall 42,000 jobs - in the Ministry of Defence and in the armed forces - are to go by 2015.

    On Wednesday Mr Osborne will outline cuts in other departments which could range between 25% and 40% - with the exception of health and international development - in addition to welfare cuts.

    Mr Osborne has already announced plans to stop child benefit payments to higher rate taxpayers.

    There had been reports it could be cut altogether for children once they reach the age of 16, rather than 18 as at present, but sources have told the BBC that will not happen.

    Chief Secretary to the Treasury Danny Alexander was photographed carrying the Spending Review on Tuesday - two pages of which were visible to photographers. It stated that tackling the deficit was "unavoidable" and there would be an "inevitable impact" on state workers.
    Summer negotiations

    While it said the wage freeze and flexibility over hours would help minimise redundancies, it suggested a forecast that there would be 490,000 fewer public sector workers by 2014-15 had been adopted by the government.

    Thousands of protesters gathered in Westminster on Tuesday to lobby MPs ahead of the announcement. Dave Prentis, general secretary of the Unison union, said the coalition government was "taking a chainsaw to our public services ... not because of a deficit, but because of an ideology".


    Greece, France and now UK. Ouch. Ouch.
  2. If only the idiots on this side of the pond would follow suit. We can only dream that someone would have the guts to start thinning out the public sector.
  3. Visaria


    I have no idea why they are protecting Overseas Development. They should cut that to zero. We can't afford it. Charity begins at home.

    Rather strangely they are going to cut the defence budget, and also policing (i.e. law and order), both fundamental and legitimate parts of govt.
  5. I agree with Visara.

    & it follows that if you get your house in order you will be more able to help your neighbours out in the future. If you choose to.

    A compromise could be to buy the limos directly from Mercedes, negotiate discounts and hand them over, rather than cash, to the third world tyrants.
  6. The greedy public sector fails to realize that when it gets too big... with overly generous wages, benefits, and retirement... and when social programs get too big.... THE GOOSE THAT LAYS THE GOLDEN EGG IS SUCKED DRY AND DIES... then "nobody has anything"...

    They need to get their collective heads out of their asses and acknowledge... if they don't accept cut backs, they will lose EVERYTHING!!

    All of Europe are such stupid shits... ridiculous and greedy. And the French.. retire at 60 on the public's nickel? They believe the're entitled to receive retirement pay for 25-30 years? Likely with COLA, too? How do they expect the private sector to afford that?
  7. UK is in bad bad shape. These steps are necessary, but don't expect to make anything putting your money in that country for a long while...
  8. Former London based multi-billion hedge funds leaving the country for Geneva and Zug tells you all you need to know...
  9. Visaria


    Actually, there's plenty of hedge funds still based here.
  10. What is the natural resource situation like in UK? Anything significant?
    #10     Oct 20, 2010