Wednesday, 8 February 2017

Avoiding Ten More Years Of Austerity

According to the Institute for Fiscal Studies, if the Government carries on with its current plans, it will take until 2027/28 to reach a surplus on the public finances.
It doesn't explain if that factors in the potential £40bn black hole in the public finances when we step away from the EU but it does say that we face at least another decade of austerity.
The problem is this Government has cut back on almost everything it can cut since the great recession of 2008, including areas it had previously ring fenced as untouchable such as NHS and education, and still we are in the black so where is left to trim?
What they don't seem to have done, and actually cut back on, was tax. They have raised the personal allowance so less people are paying tax and cut the top rate of tax so the people who paid the most, are now paying less.
Rather than cutting which unfairly hits the people at the bottom, taxing is far more fairer as it hits those who can best afford it harder than the rest of the workforce who would miss it more.
The cuts are having dangerous knock-on effects and privatization is the worst possible option, recent adventures with the utility companies show how that turned came back to bite us so rather than Governmental hand wringing about not knowing where they can cut, don't cut anything and bring in more money by raising more in tax and not forcing us to face even more austerity pain for the next ten years.

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