Wednesday, 20 October 2010

Hefty cuts

It looks increasingly as if Mr Cameron is going to make some serious cuts to Whitehall, and many would say, not before time. Whitehall seriously needs pruning, one of the major problems in the UK is that, under Labour, the Civil Service has expanded to a size and been given powers it should never have reached or had. The UK Civil Service employs more than one fifth of the UK workforce. Since they are paid by the taxpayers, they are almost now reaching the point of being self employed.

The attempt to 'save' £83 billion will be unpopular, but is the inevitable result, as it was in 1974, of the Labour Party penchant for spending way beyond the National income. As one commentator has put it, the annual cost of debt repayments Gordon Brown has committed the UK to for the next generation, would pay for three aircraft carriers (Probably to be deleted in this review), several hundred schools, hospitals and even the teachers and medical professionals to staff them. It would fund some real growth and some real investment in the future of the country.

The problem I see coming for the UK from today's budget is that it will have been prepared in Whitehall by the same vested interests that created this mess and have a vested interest in protecting their power base. That means that the armed services, police, fire services, ambulance services and real jobs will be lost while the non-jobs such as Equalities Monitoring Units, bureaucrats shuffling paper and never accepting responsibility for their failures, more social engineering and more waste will continue unabated. Companies like KPMG will earn even bigger profits and even more senior civil servants will find comfy homes and offices in the KPMG, Price Waterhouse and other "consultancy" businesses.

Its all in the nature of the beast. Only one thing will stop it - kill it completely.

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