The Great Debate UK
In the end, the ‘leaks’ worked. The various snatched photographs of briefing documents leaked in the past couple of days meant that the real story of the Spending Review was the absence of any shocks. The government managed our expectations, so political new junkies and the money markets were not really surprised as Chancellor George Osborne outlined the cuts today.
Some benefits, such as the winter fuel payment and free entry to galleries and museums, had been considered low hanging fruit, almost certain to go, but the Chancellor surprised the gallery by throwing out a few spending commitment trinkets as he wielded the axe elsewhere.
Based on these figures, it looks like 490,000 public sector jobs will have to go in the next four years. As I mentioned in my last blog post, that will have a knock-on effect to the private sector, so you can probably double this to a million jobs vanishing from the UK over the next few years. I’ve already seen some commentators suggesting that the private sector has the ability to mop up any public sector jobs losses, but these are often the comments of recruitment consultants trying to talk up their own market without foundation to get their talking head appearance on the TV news. The Sky news team, based in Merthyr Tydfil today, don’t seem to be interviewing many private sector firms creating jobs in South Wales – the jobs so desperately needed to replace the Newport passport office earmarked for closure.
The opposition says that the government is going too far, too quickly. It’s hard to call who is correct yet, but the department for Business, Innovation and Skills is finding their own budget cut by 28.5%. That’s not really sending out a strong message of private sector regeneration and I heard precious little today that would be helpful to entrepreneurs.
-Joe White is managing director of Moonfruit.com. The opinions expressed are his own. Join Reuters for a live discussion with guests as UK Chancellor George Osborne makes an emergency budget statement at 12:30 p.m. British time on Tuesday, June 22, 2010.-
The first Tory budget is a critical one. The Treasury and Chancellor George Osborne have been dropping hints for weeks about a big slash in public sector spending in an effort to try and prepare Whitehall for the worst, and to rally the private sector to step in and fill the deficit.
-Nick Earl is partner at chartered financial planners Wardour Partners LLP. The opinions expressed are his own. Join Reuters for a live discussion with guests as UK Chancellor George Osborne makes an emergency budget statement at 12:30 p.m. British time on Tuesday, June 22, 2010.-
On Tuesday we will hear the first budget from new Chancellor George Osborne.
From the snippets of information we have heard from the Lib-Con coalition camp, I do not anticipate this budget will show much sympathy for middle or high earners.
-Thomas Story is tax director at BDO LLP. The opinions expressed are his own. Join Reuters for a live discussion with guests as UK Chancellor George Osborne makes an emergency budget statement at 12:30 p.m. British time on Tuesday, June 22, 2010.-
Ten key tests by which Chancellor George Osborne will be judged when he delivers the emergency budget on Tuesday:
-Laurence Copeland is a professor of finance at Cardiff University Business School and a co-author of “Verdict on the Crash” published by the Institute of Economic Affairs. The opinions expressed are his own. -
It really is hard to resist the temptation to take a hopeful view of Britain’s new government.