Tuesday, 22 January 2013

5 Becomes 10



Quick Recap
The Public Sector spending cuts and tax increases that we are going through are designed to address the gap between what we earn as a nation and the higher amount we spend (which means we have to borrow to cover the gap). Or to put that another way……spend less, create more income and then there is no need to borrow. Austerity at its finest……apparently.
 
The Problem
Westminster informed us that their 5 year austerity plan would lead us to economic redemption. The problem……unemployment and slow economic growth is hampering how much is coming into the coffers and there is very little left to cut in public spending to make savings.
 
School Report Time  
As a consequence of the austerity measures not addressing the income / outgoing balance, Public Sector borrowing was up £600 million to £15.4 billion in December.
 
5 year plan you say? There are only 2 years left! Let’s call it a 10 year plan shall we? What’s an additional 5 years of pain between friends!
 
Frightening really.

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