Public sector/benefits to be savaged FT article

Generali

Spiv wrote: »

I think you have it in a nut shell. We can't afford "Our Lifestyle" and we have to decide what needs to go. It's unlikely that we'll all agree on what to axe.

There are a lot of things the government are doing which I don't mind paying for with tax at current levels. However, if my tax is going to go up - well, I've changed my mind. I no longer want to pay for them. I'm happy to pay for smoking cessation programs at current tax rates but not at higher tax rates. I'm sure the majority of voters feel the same.

Well there's a gap of almost 25% between Government spending and taxation right now. I think lots of people are going to be facing big cuts in spending on their favourite things.

Spiv_2

Generali wrote: »

Well there's a gap of almost 25% between Government spending and taxation right now. I think lots of people are going to be facing big cuts in spending on their favourite things.

There's a price people are prepared to pay for goods and a price at which they will walk away. I think there are lots of things the government are doing that people will decide they no longer want if taxes have to go up. Any future government will have no trouble finding areas to cut. Obama seems to have found $17 billion with ease this week.

treliac

Wookster wrote: »

Somehow that work ethic has been lost by some of the masses who have been unemployed for several years. Other than the threat of destitution, how can these people be weaned back to work?

One of the major failings of this govt, IMO, is their continual inability to understand human psychology and the likely consequences of their social policies.

It's not impossible to introduce change, rarely is anything that, particularly given the current and (likely) future mood of the country. It does require the political will though.

I'd be more than happy to work on addressing these problems, in both a practicable and compassionate manner.

Wookster

BACKFRMTHEEDGE wrote: »

OMG where do you live? I've never met anyone like that in my whole life!

I'm from Zimbabwe (a country with no social security net at all) and live in London.

I'm not sure exactly what you're getting at but as someone who has recruited at high levels I can tell you what I have said is 100% correct.

donaldtramp

I'm looking forward to this new reality that will kick in after Clown gets the bullet.
Yup its gonna hurt and there is nothing I can do about the money he has !!!!!! up against a wall. Nothing we can do at the moment about the way he has structured our society.
BUT looking forward, the new reality will be changed to favour the hard working.
The crazy bloated state is going to be culled and the workshy will have their benefits cut. I'm all for it.
There will always be a place for the hard working and I'm looking forward to enjoying more of my own money and not seeing it going to support the ridiculous state of affairs we are in now.

Former_Spice

'employee contributions to public pensions'

What makes you think this doesn't already happen? Myself and 2 million others already fork out up to 7.5% of our pay. Articles like this are likely to cuase further reductions to povert y level pesnions averaging at £3800 for local government..

Former_Spice

What makes ou think there are 'bullet proof pensions'? Already being cut once and close to certain that this will happen again, the Tories aren't making any secret of their intention ti reduce the value of money already earned and paid into a Pension fund by as much as possible.

Generali

Former_Spice wrote: »

'employee contributions to public pensions'

What makes you think this doesn't already happen? Myself and 2 million others already fork out up to 7.5% of our pay. Articles like this are likely to cuase further reductions to povert y level pesnions averaging at £3800 for local government..

Very few put away enough for their retirement and so rely on the largesse of taxpayers to make up the difference.

That applies to Civil Servants as much as anyone else - they are promised a great pension but their employer isn't putting the money aside. Thus current public employees are relying upon the generosity of future taxpayers to keep prior promises.

It's the same if the average pension is GBP3,800 or GBP380,000 - pleading poverty makes no difference to the range of possible outcomes.

Former_Spice

Generali,

That's appears to be a generalistion about everyone in the public sector which is a bit silly.

Local Government Pensions and some other parts of the Public Sector do have money put aside that's intenended to cover future liabilities.

Generali

Former_Spice wrote: »

Generali,

That's appears to be a generalistion about everyone in the public sector which is a bit silly.

Local Government Pensions and some other parts of the Public Sector do have money put aside that's intenended to cover future liabilities.

I very deliberately and correctly used the term Civil Service rather than loser terms like 'Public Sector'. The Civil Service pension scheme has GBP0 in assets covering liabilities that I have seen estimated at levels between GBP600,000,000 and GBP1,000,000,000,000.

Local Government pension scheme liabilities should be 100% covered under the terms of the schemes. Right now they probably aren't because of the falls in asset prices. It'll be interesting to see the Government response to the likely shortfall in Local Government pension schemes. They should be made up to par. I doubt they will for political reasons.