Itās nice to have a forum with a spread of industries people work in, and the expertise they can provide to the rest of us from working in that field. Mine is local government Highways infrastructureā¦
I have copied part of the IFS report you posted for a balanced perspective - already awaiting excuses.
ā## The 2010s: austerity and financial reform
The 2010s saw significant cuts to many areas of public spending as the governments of the time sought to reduce a large and unsustainable budget deficit following the late 2000s financial crisis. Funding for local government was no exception to this, with English councils facing some of the largest cuts seen by any public services over this period.ā
No one can argue about the funding falling below real terms and a large period of austerity measures.
This Government has now inherited a large budget deficit/black hole. I really hope they have better ideas than cutting spending and are successful in turning the countries fortunes round. I personally feel there will have to be some short term suffering by all, for the government to get the books balanced.
I think we all want that but they may not have a choice on cutting spending. We could be at the mercy of the lenders on this. Labours fiscal rules may also prove to be a sticking point.
Ignoring Truss (which is damn difficult) this is largely the result years of fiscal mismanagement post 2010 and that includes Covid. Killing GDP, while interest rates were so low was a disaster move imo. And when Covid hit, no one gave a second thought to economic recovery afterwards.
This is what I mean when I say he hasnāt got moves. There really isnāt a lot he can do.
They canāt put up taxes - the average personās tax burden is already eyewatering. They canāt borrow money as the UKs rates are not realistic.
Literally the only thing they can do is to cut spending.
The left wingers will shout to tax the wealthy, and Iād agree with that. Except this isnāt the fifties and wealth isnāt tied to the UK through industry like manufacturing. Itās virtually impossible for the Government to get back the money that has been given away to already really wealthy people.
There are long term things that can be done, like getting us back in Europe (or at least aligned with the single market so that we can start eating into that £100bn a year). But Labour are unlikely to get a second term.
Itās almost as if people want to vote for fairy tales than be realistic about where we are as a country
You are right, but long term that has to be the strategy or we are truly screwed. They need to find a way somehow. We have essentially given everything away.
Short term spending cuts is their only move I agree.
I agree, and weāve previously discussed mechanisms like Land Value Tax, which Reeves did seem to be warming to prior to the election. Gone quiet now though.
If I were in Starmerās shoes right now, I would be thinking āFuck it. Letās go down swingingā. But that doesnāt appear to be his style.
Like in the 2017 manifesto they could raise taxes for the top 5%. Also bring corporation tax back to previous level before it was reduced, and make the mega corps actually pay it.
Weāve been brainwashed into thinking that eminently sensible ideas, that work in other countries, are fairy tales.