Thursday, 29 April 2010
What should be said at the economy debate
Now, as we know from reports this week, none of the Parties are coming remotely close to telling the electorate the truth about what is to come. Whilst this may seem a clever electoral strategy it is of course the worst thing you can do long term. When the cuts come despite the promises not too then the electorate is going to get very grumpy.
So what should the answer be? I think it can be put in a few points quite succinctly;
- Look at Greece, that is where we are headed, we need to attend urgently to the need to stop the national debt rising so quickly. Once is gets to 100% there is no way back.
- To stop this we need to cut borrowing to zero over the next parliament
- This means saving about £100 billion a year spend in real terms.
- To do this we need to cut social benefits by 10%, scrap all Child trust Funds, credits etc.
- We need to cute the payroll of the civil service by 3% per year; a pay freeze in the public sector for the full term of the parliament, and a commitment to only replace 1 job out of every tow where people leave or retire. MP's and senior government officials will have a 10% pay cut.
- A big cut in the international aid budget for this time period.
- To help the private sector create jobs for the ex-public sector workers, we need to scrap the planned rise in National Insurance
- The tax credits system will be abolished and personal rates raised to reduce the cost of administration.
- We need to align public sector pensions with the private sector pension system.
- We will stop investing in inefficient green technologies and focus on developing nuclear power for the UK.
- We will enter negotiations with the EU to reduce our annual payments in line with our new straightened circumstances
The above measures are only going to get us half way to our target. A comprehensive spending review will take place immediately post the election to looking into the departmental budgets. Expected programs that will be stop include: NHS computer system and other large IT projects, ID cards, Aircraft Carriers, Future fighter aircraft.
Its not pretty, but it is what has to be done. What have I missed?