George Osborne has missed his chance to end the British disease – Ambrose Evans-Pritchard Telegraph

This is a good article from Ambrose Evans-Pritchard, International Business Editor at the Telegraph.

via George Osborne has missed his chance to end the British disease – Telegraph.

This article takes a hard look at the record of UK Chancellor, George Osborne and his outline proposals for the next parliament, if the Conservatives return to power. The thrust of the article is that the UK is still not managing both public and private sector debt effectively. Also the article recognizes that the UK record on competiveness is getting worse.

I have just returned from a trip to London and can witness first hand this crisis. A three bedroom terraced house in an attractive central London suburb is now circa GBP2 million. Unless you are from a privileged and wealthy background, young people will increasingly struggle to buy their own home in London. Across London I witnessed numerous cranes on the skyline, deployed for expensive refurshishment of large private homes.

As an expert in delivering strategic change, I worry deeply about the absence of cohesive strategy from the government, and the nation’s risk register where major risks seems to go unmitigated.

Let me turn to an open question:

How should the UK effectively reduce the levels of private & public sector debt?


One response

  1. Dr Alf raises a series of conundrums but public sector debt has to be dramatically reduced.
    This not least because when NNDR and local authority charges for planning,parking etc are added to Corporation tax the UK has one of the least competitive economic environments it is possible to imagine.
    Local Authorities are for the most part grossly inefficient,often corrupt and always overmanned.
    They waste money on unnecessary planning applications and are run as personal fiefdoms by overpaid CEO’s.
    Worse than that there are far too many of them and often even after the outsourcing of services the original headcount stays the same whilst the outsourced employees and related costs represent a double whammy.
    Public sector workers take 9 days uncertificated unplanned absence a year as opposed to the private sector average of 6 days.
    Public sector productivity runs at 32% or just 70 working days per year out of 220 working days and spans of control are too narrow with each team leader and manager given assistants so that people who are “plateaued” can be paid more(ie money above their actual grade).
    Even in 3 star(top 25%) County Councils there is 67% overmanning so what it must be in the more inefficiently run 1 and 2 star councils I dread to think.
    This logic mandates that the UK needs 15 large local authorities,police constabularies and fire commands and that 2 million unnecessary people could be cleared out with no loss of efficiency whatsoever.
    Civil Servant numbers need to be reduced to 15,000 and Districts and Boroughs abolished and replaced with outsourced provision.
    The overseas aid budget currently runs at £12 billion gbp and needs to be scrapped,the same goes for the Barnett Formula and the running sore represented by subsidising Welsh,Scottish,Northern Irish and Cornish citizenry wanting their own Parliaments and handouts from the rest of us.
    This done businesses can expand,take on people and the economy can start to be rebalanced.
    Corporation taxes are too high as are energy prices.
    Reduce these and get the offshore stashes of hidden cash back onshore.
    It is not rocket science.

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