English: George Osborne MP, pictured speaking on the launch of the Conservative Party manifesto for the 2009 European Parliament elections, at Keele University. (805×1207 px, 283,711 bytes) (Photo credit: Wikipedia)
This is an important story from the FT that’s well worth a read. Check it out!
Budget black hole at heart of George Osborne’s finances – FT.com.
Clearly, Chancellor Osborne is relying upon more “slash and burn” or top-slicing, rather than looking at strategic options of consolidating departments. Once again front-line services will suffer. There seems to be a backlash against special protection for health, welfare and foreign aide.
For me there seems to be confusion between capital budgets and operating budgets. Keynesians will argue there there is separate financial case for increasing capital spending in carefully costed and risk assessed programs. With historically low borrowing costs, there must be huge opportunities for positive net present value on these programs; this would contribute to growth very effectively.
There would appear to considerable room for the media to challenge George Osborne to take a more intelligent approach to cost cutting and investment for the future. There is enormous room for consolidation in both central and local government, taking out layers of management and protected inefficient practices. Public Sector pensions are another protected cow; why?
Do you agree that a vision is required, supported by proper strategic analysis and delivery, including widespread outsourcing?
This week we have seen evidence linking austerity to increased suicides. Surely, there are more intelligent options than Chancellor Osborne’s Plan A?
What do you think?
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