UK is about to get tough on its budget affecting millions

The bizarre state of affairs though is that they are talking today about stuff I had predicted happening over three years ago and the “20 years” people are now talking about for recovery was also previously predicted. But I also believe the recovery will be in several phases as the first bite will affect everyone but maybe if the government are aggressive enough it can force the unemployed who can work back to employment status and off the track of burden. If the first bite is done correctly its ripples will improve the economy within 5 years but the long term affects will be at least another 15 years off. We also have to remember that the UK has been ignorant with China and its industrial revolution the UK has become the middle man of Europe and really needs to start looking within its own borders for development. No country should abandon its farming or industrial sectors as they are simply the backbone of any economy. Great to be in finance but look what happened and look how it spread worldwide who lost and who benefited? the poor and middle classes lost and the rich got richer.

I will be interested to see how the speech goes and how much and how quickly things are put into action. But one thing for sure it looks a lot better being thousands of miles away than about to take years of hardship.

 

Rob Cole, Sky News Online

Britons must brace themselves for huge spending cuts that will hit "our whole way of life", the Prime Minister will warn today.

In a major speech on the economy at 10am, David Cameronwill say that the action he will take to cut the budget deficit will be worse then originally feared and the effects could be felt for decades.

Mr Cameron will warn that "every single person" will be affected.

"How we deal with these things will affect our economy, our society – indeed our whole way of life," he will say at an event in Milton Keynes.

"The decisions we make will affect every single person in our country. And the effects of those decisions will stay with us for years, perhaps decades to come.

"It is precisely because these decisions are so momentous, because they will have such enormous implications, and because we cannot afford either to duck them or to get them wrong that I want to make sure we go about the urgent task of cutting our deficit in a way that is open, responsible and fair."

The decisions we make will affect every single person in our country. And the effects of those decisions will stay with us for years, perhaps decades to come.

David Cameron

The Chancellor George Osborne will tomorrow publish details on the principles meant to underpin the June 22 emergency Budget, which will tackle the £156bn annual deficit.

He and Danny Alexander, the new Chief Secretary to the Treasury, will announce a process to "engage and involve" the whole country in "the difficult decisions that will have to be taken".

Mr Osborne will speak on Tuesday

Mr Cameron told The Sunday Times that the debt problem facing the Government was "even worse than we thought" and the implications could be "more critical than we feared".

He suggested that high welfare and public sector pay bills were high on the Government’s list for cuts.

Child tax credits for better-off families are also expected to be curbed.

Capital gains tax is likely to rise, although there is speculation that there could be generous exemptions for certain groups of people, including entrepreneurs and pensioners.

And Ministers have refused to rule out a rise in VAT, from its current level of 17.5%.
However, the Government wants the bulk of its savings to be made by reducing current expenditure rather than raising taxes.

Nick Clegg, the Liberal Democrat Deputy Prime Minister, insisted at the weekend the cuts would not mark a return to Thatcherism.

2 comments for “UK is about to get tough on its budget affecting millions

  1. Tropicalpenpals
    June 8, 2010 at 6:50 am

    To be honest from the help I had when I left school I couldn't care less about the inner city kids etc. as the same fate is why my brothers are still out of work. Unlike them though I spent years at college and paid for it “myself”. Yet if we were 35 miles further north the corrupt Birmingham councils are handing out free training in pretty much everything as it all comes down to making money via government subsidies that Worcester isn't poor enough to receive.. What a joke! The problem with Worcester is that the standard of living is a bit higher than other areas because it has more rich people in the area but in a “fair” system that is some mythical thing pulled out of a hat surely the poor in Worcester are or even more worse off than someone in Birmingham as they have less opportunities handed to them on a plate?
    The fair system seems to come up a lot but it seems people like me who earned everything I have and paid for my own education don't count they just want us to pay for everyone else so its fair for them to have a good standard of living yet bleed my pocket. £500 a week I was paying in tax and national insurance and for what in return? Nothing.. NHS? Don't use it and after I have been out the UK for 3 months I lose my entitlement. Pension ? now that's another joke! I should be allowed to completely opt out and do my own funding as I can't trust the financial sector with my money. All in all its rip of the middle earners to pay for the poor and the rich. Well thank god its time now that the burden has got so bad that people actually have to do something. People talk of the Thatcher years re-emerging but nobody has even thought what Thatcher wanted which is the “victorian era” the them and us, the rich and poor and who can we blame? Firmly in the hands of the Labour government. Single handed have brought the country to its knees and still shouting how the conservatives are the problem.. 13 years of champagne charlie type running of a government and they have the cheek to make claims on the conservatives. I am neither a supporter of the conservatives either I am a supporter of a strong economy and a country that is more awake than it is asleep.

  2. Andrew Swarbrick
    June 8, 2010 at 6:40 am

    I think in many ways you are spot on Matt, the uk is in for some very severe pain and it wont be short term either. The whole subject of cutting the welfare state is one that finds two very polarized views that go form cut it all make them all work to the no these people are entitled to this the system is there to help people. At the high level its easy to have one of these two views and most of us fit within one of the two camps, however dig a little deeper and we find its nothing like as easy to define which camp you belong to and most of us fit somewhere between the two. Let me try and give a few examples to show what I mean, the first is that everyone who claims benefit for not working should be made to work which a lot of us would day yes I agree with, now lets lay across this the fact that one of these people has a young child is that still required when in order to make them work we would have to provide child care which would actually cost more than the benefit was currently pay them. Most of us would then say ok lets wait till the child goes to school then this person can work part time to get their benefit, which again sounds good, however what is clear that half of the women on this perpetual benefit do so by every year or tow having another kid so as to negate this criteria.
    As we begin to see how its not as easy to decide how to do these things as in reality beneath the top level there are a myriad of specific cases which we would probably decide should be funded or not, the problem is the ones most of us would select to be funded are different in each case.
    This is the reasons I think you half to take the tough decision to just do it and except that some of the most vulnerable in society will loose out and some of the better off will be fine. This I am afraid is the way it is there is simple no way to decide on specific cases so lets not even try just do it and except the pain some will feel and also I’m afraid except that some kids will be lost to the system and so people will be lost to the system and know that they may be damaged for life. There has been times in the uks history when this has happened before ie the wars we understood that hundreds of thousands of men an women would be damaged for the rest of their lives yet we had to do it as we had no other choice. In summary I think we will end up excepting that yes some of the most vulnerable in society will be hurt or even damaged by these decisions, yet we cannot help that fact lets just say ok it sucks yes but do we need to do it yes we do.
    I think part of the issue we face is vey few people understand the sheer scale of the problems finds itself in and regardless of who we blame for it the fact remains we have these issues to face. We currently increase or borrowing by an extra 158 billion pounds every year so lets understand that we are not say our debt is 158 billion we are saying it increases by another 158 billion each and every year. Clearly this can not continue or the international money markets will make us make the changes that need to be done by simply not lending us any more money thus making us completely bankrupt which would cause more pain than any of us have ever seen.
    One thing is for sure all of these issues are much easier to take when you are sat 7 or 8 thousand miles away as I do.