Cameron's Cuts - Here Comes The Pain!

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Cameron's Cuts - Here Comes The Pain!

Post  El Guapo on Thu May 13, 2010 5:47 am

Blueprint: The key proposals

Cutting the deficit

THEY agreed to "significantly accelerated reduction" in £163billion deficit.Public spending cuts main weapon, not new taxes. Emergency budget within 50 days and £6bn cuts in spending this year.

Review on spending

SPENDING review to be held in autumn.

"Real" rise in NHS funding. Overseas aid to hit 0.7 per cent of UK's wealth.

Extra cash for poor pupils. New Trident nuclear deterrent to be "scrutinised" for value.

Tax breaks and hikes

NATIONAL Insurance WILL rise 1p for 20million workers, but not employers. Tax-free earnings to reach £10,000 in long term. Lib Dems can abstain on married tax breaks. Capital gains tax rises to match income tax.

Reform of the banks

NEW banking levy plus "robust" action on bonuses. Moves to make banks lend more, including loan guarantees. Independent commission to look at splitting banks. Bank of England gets control over regulation.

A cap on migrants

ANNUAL limit set on non-EU immigrants.

The deal will also stop migrant kids being locked up. But a Lib Dem plan for an amnesty for a million illegals is ditched. Parties will talk further on how to impose limits.

Big voting shake-up

ELECTIONS every five years. Parliament disolved only if 55 per cent of MPs agree.

Referendum on a new voting system, but parties can be for or against. Voters can "recall" MPs. Committee to plan elected Lords.

Pensions and welfare

RETIREMENT age to be phased out. State pension age rises to 66, with basic rate linked to earnings.

Rewards for private welfare-to-work firms more closely linked to success. Handouts only for those willing to work.

New-look education

CHARITIES or firms can set up schools. More freedom over what kids learn.

On universities, parties will wait for a report by Lord Browne. Lib Dems can abstain if they oppose the Government's policy.

Relations in Europe

NO more transfer of power to the EU, with any changes put to referendum.

The Government will not oppose Brussels increasing criminal justice powers.

Parties ruled out joining Euro while this deal is in place.

Civil liberties

"FREEDOM Bill" to scrap ID cards, kids' database and new biometric passports.

Freedom of Information extended. Safeguards on DNA database. Moves to stop anti-terror laws being misused and protect trial by jury.

A greener country

"LIVE" readings on home electricity meters. No new runways at Heathrow, Gatwick or Stansted. Duty on planes, not passengers, to stop airlines flying empty jets. Lib Dems can abstain on plans for more nuclear power.

No real shockers I guess...

The turnaround in the 1p hike in NI is surprising though. Didn't Cameron pledge he wouldn't raise NI? It's only taken him two days in office to break one of his key manifesto promises lol

Capital Gains tax is also going to hit people very hard I think. We're going to see the buy-to-let market collapse and I'm not sure what effect this is going to have on house prices. I imagine the next few months will see a surge in the number of flats being sold before the capital gains tax hike kicks in.

(Little tip...Anyone who owns a second property should consult a lawyer immediately. There ARE ways and loopholes to minimise the amount of Capital Gains tax you will pay after these new measures come in. ;-) )

The cap on immigration would seem to be welcome news but don't be fooled people! 80% of immigration over the past decade has come from EU countries rather than non-EU countries. The cap will also NOT affect asylum applications. All in all, this announcement is a heap of PR bullshit lol

Not sure about the proposed voting reforms either. Unless you want a coalition government after every GE Proportional Rep. is NOT the way to go.

The sanction on any new EU regulations becoming UK Law unless a referendum is held is great news! IMO The EU is doomed and the sooner it collapses and everyone is left to go their own way again the better.

If Carlsberg made men...

El Guapo

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I believe it is right to start on cuts now.

Post  Guest on Sat May 15, 2010 3:13 pm

Leaving it till next year or the year after as labour planned would have only increased the size of the cuts necessary to slash the national debt.
I also think vat rises are necessary now as a temporary measure, and if the planned fuel levy, fuel tax down if the cost of fuel goes up,does kick in,it should even out the hardships suffered by the transport industry.

We will all see some increases in the cost of living in one way or another,but if the government don't hit the workers or the home owners with n i rises or higher interest rates they should get the country out of this hole that labour created,without harming the poorer folk.

Then we can return to the prosperous and good times that we have seen in this great country.


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Re: Cameron's Cuts - Here Comes The Pain!

Post  EarthsAngel on Mon May 17, 2010 1:23 am

It now seems that Labour left a far worse mess than anyone anticipated. The new Government are now having to bring in top auditors to measure the damage. The Tories are horrified and the REAL amount of debt left by the Labour loons. I think some very tough times are ahead, but it has to be done, the country will be bankrupt if very strict measures aren't put into place immediately.

The same thing happened after the Tories took over from Labour, the financials were in a terrible state and had to be sorted once again by the Tories. When Labour took over the country thirteen years ago, the economy was strong, the bank balance was billions in the black, it took Labour only thirteen years to squander and pillage, the Tories are once again expected to do the dirty work and try to get the economy going.

Put a Bible in the wind and the rain and it will perish; my Bible IS the wind and the rain


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Re: Cameron's Cuts - Here Comes The Pain!

Post  EarthsAngel on Mon May 17, 2010 2:02 am

At least Cameron is starting with all the overpaid, useless Public Sector morons.

David Cameron declares war on public sector pay
David Cameron has vowed to crack down on "crazy" bonuses paid to civil servants as the new Government seeks to reduce the costs of the bloated public sector.

By Rosa Prince, Political Correspondent
Published: 10:00PM BST 16 May 2010
David Cameron on the stairs of 10 Downing Street
David Cameron on the stairs of 10 Downing Street Photo: EPA

Out of control hand-outs, which this year will be paid to three-quarters of senior civil servants, are to be restricted to high performers.

Under the terms of Whitehall contracts signed by Labour ministers at the height of the recession, bonus payments can not be cancelled by the incoming Government.

In future, however, windfalls across the public sector will be restricted to employees who have performed “exceptionally well,” with only the top 25 per cent eligible for the payments.

A separate commission will limit pay for the heads of state bodies to no more than 20 times that of staff on the lowest salaries.

And a taskforce, to be launched on Monday, will begin examining all Government expenditure to seek ways to cut back on “irrational” spending.

It will identify “poison pills” - spending commitments entered into during the “dying days” of the last government.

George Osborne, the Chancellor, will within days set out the broad areas where he anticipates he will be able to find £6 billion in efficiency savings.

Fuller plans are due to be set out in an emergency budget next month, which will be followed by a comprehensive spending review .

The Prime Minister said that since taking up their new posts, his ministers had been horrified at the spending decisions taken by their predecessors.

"From the large to the small, we are going to take action to stop the very bad decisions that were taken in the dying days of the last Labour government,” he told on the BBC’s Andrew Marr show.

"What we have seen so far are just individual examples of very bad procedures and bad behaviour, spending decisions taken in the last year or so of the Labour government that no rational government would have done - giving something like 75 per cent of senior civil servants bonuses after everything that's happened in the current year.

"That's not a fiscal stimulus. It is a crazy thing to do. We are beginning to find individual decisions like that."

By cutting mandarin bonuses by 65 per cent, £15 million a year will be saved for the public purse.

While the figure will not make a significant debt in the £167 billion deficit, Conservatives say that the bonus payments are symbolic of the lack of rigour in Whitehall under the last government.

A No 10 source said that cancelling the pay-outs should be seen as an “emblem” of the new coalition Government’s desire to get spending within the public sector under control.

The pay commission will be chaired by Will Hutton, an economist and former newspaper editor.

Its remit allows for wage reductions for those at the top of the salary structure, and there must be no overall increase in overall public sector pay as a result of the levelling process.

The pay rules will apply across Whitehall, local government and the NHS, but, to the frustration of the incoming Government, can not be enforced in the BBC because it is an independent body.

There has been growing anger about the level of remuneration in local government – last month it emerged that 31 town hall chiefs were paid more than the Prime Minister. The number picking up six-figure salaries rose by 14 per cent last year.

Frank Field, the right-leaning Labour MP, confirmed that, in addition to Mr Hutton’s work, he was in discussions with the Prime Minister about chairing a separate inquiry into poverty.

As the Government begins the task of tackling the swollen state, the Office of Budget Responsibility taskforce, headed by Sir Alan Budd, a former member of the Bank of England’s Monetary Policy Committee, will examine every area of Government expenditure.

Ministers have already been shocked at a number of public expenditure “landmines” left behind by their Labour counterparts as what they consider to be a “scorched earth” policy by the outgoing government.

Vince Cable, the new Business Secretary, told the Sunday Times: "I fear that a lot of bad news about the public finances has been hidden and stored up for the new government. The skeletons are starting to fall out of the cupboard."

David Willetts, the Business Secretary, added that Labour had left behind "not so much an in-tray as a minefield".

Writing in the News of the World, Mr Osborne said: “What a mess they’ve left behind.

“The national debt is soaring, wasteful spending is everywhere – and the news on the day I was appointed that 53,000 more people are unemployed was a stark reminder of the dire state of the economy.

“Labour brought Britain to the edge of bankruptcy and left everyone but themselves with the bill.”

Mr Cameron said that Sir Alan’s audit would help identify the “difficult decisions” which would have to be made in most Whitehall budgets in order to reduce the record state deficit.

He added: "We have a budget within 50 days, which sets out the total spending envelope over the next three years.

"Then we have a proper spending review taking place over the summer and into the autumn where we work out how to distribute these difficult decisions between the various departments."

But Mr Cameron’s promise to tackle the public sector came as he risked accusations that he was alienating core Tory voters by boosting capital gains tax in order to fund a Liberal Democrat policy to reduce income tax for low earners.

He said that second home owners were not “splendid” for the economy, and that taxing them at a higher rate – which experts predict could reach 50 per cent – would help the “fairness agenda”.

The bonus restrictions will hit around 4,200 people senior civil servants and 1,100 NHS senior managers. The average bonus for civil service directors was £12,700 last year, while NHS managers received up to 7 per cent of their salary.

Francis Maude, Cabinet Office Minister said it was right that the most highly paid civil servants "play their part" in reducing the public sector pay bill.

"An effective system will reward the best performers and provide the right incentives for all to get the best for the taxpayer," he added.

"There is no place in the modern civil service for a presumption of good performance. Rewards must be earned through excellence assessed through a hard-headed and objective appraisal process."

Mr Cameron said that he was also determined to cut the previous government’s £1.5 billion for management consultants.

Put a Bible in the wind and the rain and it will perish; my Bible IS the wind and the rain


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