Sunday 19 April 2009

Sunday Open Thread; What would you do in the Budget?

Alistair Darling and his disreputable henchmen have the duty of presenting a budget for UK the next fiscal year this week.

If you were in his shoes what would you do? (token points only for those that say Suicide or Resign)

There are 3 main options:





Fiscally Conservative - Cutting services and reducing debt


Fiscally Neutral - Holding spending down to a level consistent with this year (in the current case, this is actually quite expansionary)


Fiscally Expansionary - Blow a huge debt bubble and hope it drags the economy out of recession enough to enable repayment of the massive debt

What would you do, answers in the comments? Best answers will get hat-tipped an incorporated in the CU budget plan which will be out soon.

47 comments:

Pogo said...

A couple of suggestions to start you off...

1. Completely close the DTi / BERR, or whatever it's called this week.

2. A sliding-scale cut of all public and civil service salaries, starting at zero for the very lowest grades increasing in size to 25% for the highest.

CityUnslicker said...

Pogo - Labour to cut its client state...the civil service to be involved in writing its won death warrant. Worthy but unlikely.

Scrap the BERR is a good idea, and Mandy with it!

Houdini said...

We know the only option is to cut spending, but Brown has backed himself into a corner.

He will raise taxes with massive stealth and cross his fingers that nobody notices, and of course it will be dressed up as green taxes.

Massive cuts in spending is the only way though.

Pogo said...

CU.. Yes, I know that it was a moment of absurd optimism to assume that the civil service would ever contemplate any form of moderation, but there's no doubt that what needs to be done - and certainly won't be by Labour and probably not by the Tories either - is a massive trim-back of the state.

A good 50% of the quangocracy should go for a start - Regional Development Councils, assorted marketing boards, anything to do with professional sport, etc...

Then get the knife to the NHS spine system, ID cards, virtually all of the databases, wind-up ACPO Ltd - it's absurd that to all intents and purposes top-level police policy should be formulated and run (very profitably) by a private limited company... The MoD could do with a bit of weight-loss too, I believe that there are more office employees in the MoD than there are soldiers, sailors and airmen, we also have more Admirals than ships.

Actually, I quite liked the budget that "Obnoxio" outlined on his blog a couple of months ago..

Rant over, nice afternoon, time to go for a pint before the tax goes up!

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We know the only option is to cut spending, but Brown has backed himself into a corner.

He will raise taxes with massive stealth and cross his fingers that nobody notices, and of course it will be dressed up as green taxes.

Massive cuts in spending is the only way though.

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Vehicle duty: A load of new bands pushing most family saloons into a £260 band, despite only raising the actual duty 5%.
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Garden tax. If you have a garden then you're not a true red. £5/sq ft.
BUT

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I would cut all taxes to 0%

Then remove the fractional Reserve banking model.( and let the banks fall over )

And then control the expansion of the money supply by spending (creating) money into the economy.

Also put a cap on the multiplier of debt to income ratio, perhaps even ban credit all together.

A new system for a New World Order.

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Enact one law stating that if a government left office with the country in a worse state than when they assumed office the entire cabinet are shot and their assets given to the state.

Simon Fawthrop said...

I would do the same as would be done in any company that was in such dire straights:

1. Announce an immediate 10% cut in Opex to be achieved by a reduction in headcount of x by the end of the year. (maybe more if I could see the books)

2. A complete suspenson of all Capex projects that are not under contract whilst a through review by grown ups takes place

3. Notice to all suppliers that we are reviewing all contracts and expect an immediate 10% cut in prices whilst we review contracts

4. Monthly review of progress to shareholders with a new budget in 6 months

5. A reduction in senior and middle management postions of 50% immediatel (aka the parliamentary payroll vote)

CityUnslicker said...

Harold Wilson - what a leak this is... from Draper...does he never learn!!

CityUnslicker said...

top marks to Pogo and Houdini!

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