Britain’s Treasury Chief Drops Plan to Cut Welfare – The New York Times

English: East entrance of HM Treasury Français...

English: East entrance of HM Treasury Français : Entrée Est de HM Treasury (Photo credit: Wikipedia)

Stephen Castle, the NYT correspondent in London, takes a critical look at George Osborne‘s record. He cites the move by George Osborne, chancellor of the Exchequer, being a significant tactical retreat, in the face of political opposition, in his drive to shrink the British state and balance its budget.

Source: Britain’s Treasury Chief Drops Plan to Cut Welfare – The New York Times

If you read the article carefully there are a number of important criticisms. let me give you a flavor of  the ‘BUTS’:

Britain still has a large budget deficit, relatively high public debt and low productivity.

Mr. Osborne remains far behind his originally promised timetable for balancing the budget

I’m also suspicious of Osborne’s tinkering with the UK housing market.




One response

  1. Dr Alf via this New York Times article makes telling points but the “tactical retreat” over tax credits and the police will need to be revisited and in the case of the fraud ridden Working Tax Credit System will be very soon.

    Working Tax Credit should have been axed entirely because under it a person can get a friend to buy an off the shelf company with some trading history and then employ them for 16 hours a week with the person who is “employed” giving their friend a bit of money which is then run through it and used to pay the person a nominal salary.

    The person can then claim Working Tax Credits on the basis that their income is too low.

    A Housing Benefit recipient can do some part time work as a carer,move her boyfriend into the rental property ,have up to 5 babies and get the boyfriend to care for the children whilst not working.
    The Housing Benefit recipient limits her hours and then claims up to £135 gbp a week in Working Tax Credits.

    Then there was the retreat over the police budget which was wholly unnecessary because nearly 20% of the total police budget is kept as “reserves” and because with a total of 55 police forces in the UK all of which are inefficient and overmanned with too many top managers and Chief Constables their is colossal waste.

    The extra Stamp Duty levy will damage the buy to let market,push up house prices and encourage people to engage in buy to let abroad.

    Osborne failed to “get real” with the public and the vested interests this time round but sooner or later all of them have to be given the hard word and in the case of vested interests taken on.

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