Will the govenment spending review be much less painful than we are led to believe?

bendix

I hope the cuts are savage.

StevieJ

Yes, no doubt they're talking up the extent of the cuts and they won't be anywhere near as bad

It makes sense to psychologically soften up with threats of oh so savage cuts and with the actual changes not as bad, think Capital Gains Tax changes.

mbga9pgf

No, reserve your seat in the bunker and bring all the beans you can carry

I have heard a rumor (from a very reputable source) that 40% job cuts are going to be announced in some public sector departments in October. Lets put it this way; the government are looking at keeping council tax down for a long long while. From what I hear, the govt are planning to get all the bad news out in a one-er, as its going to be so grim that they need to get it done quickly.

I am not messing around. Come November, there will be NO DOUBT as to why interest rates are staying so low for so long.

chucky

mbga9pgf wrote: »

I have heard a rumor that 40% job cuts are going to be announced in some public sector departments in October. From what I hear, the govt are planning to get all the bad news out in a one-er, as its going to be so grim that they need to get it done quickly.

I am not messing around. Come November, there will be NO DOUBT as to why interest rates are staying so low for so long.

you got more chance of your ALT-A ticking time bomb going off than 40% cuts...

Really2

Yes, no doubt they're talking up the extent of the cuts and they won't be anywhere near as bad

mbga9pgf wrote: »

I have heard a rumor that 40% job cuts are going to be announced in some public sector departments in October.

Which ones? councils have already been given the 25% mandate to cut costs. They start being implemented now to the start of the next financial year.

Some departments will be cut 100% but that then means other departments have to make fewer cuts.

40% of staff would be way over 40% of costs I would say (Staff being the highest cost in most departments)

Some departemnts were asked to budget for 25 and 40% though, but 25% is being implemented AFIK.

michaels

Except that may be as a shopkeeper a lot of your revenue comes from the govt workers all based nearby or as a builder several of your customers contemplating an extension chose not two as one of their dual incomes was in a public sector or local govt job that no longer exists etc.

Really2 wrote: »

If your company has no exposure to the public sector it is fairly obvious you will not be as greatly affect as those who are.

Really2

Yes, no doubt they're talking up the extent of the cuts and they won't be anywhere near as bad

michaels wrote: »

Except that may be as a shopkeeper a lot of your revenue comes from the govt workers all based nearby or as a builder several of your customers contemplating an extension chose not two as one of their dual incomes was in a public sector or local govt job that no longer exists etc.

Or you could be a shop keeper who just sells to anyone not just government workers or a builder who has not had a job cancelled.

What does it do? my example is indeed more plausible than yours. (because there will be less than 25% job cuts, it is cost cuts, so managers etc will be first to go and make up for 2-4 staff jobs)

You could be wast company who lands a contract because of this etc, but I am not going to bleat on about possibilities.

In reality how many shop keepers and builders do you think will go bust on these cuts?

I suppose you would have rather they paid twice as much tax (and everyone else in the country for that matter) to keep the services and go bust that way?

alex_curtis

It's the 1980s all over again! The Tories will cut spending and taxes and when Labour get in next, they will spend & tax! Anyway, just to put everybody's mind at rest, governments are generally inept at cutting spending so I don't believe it will be that bad.

amersall

No, reserve your seat in the bunker and bring all the beans you can carry

Blacklight wrote: »

Thinking back to the budget and all the talk of the tax hikes, CGT crippling every landlord in the country, scrapping NI and lumping it into one tax, etc. None of it was as bad as all the talk in the press. In fact I remember being quite pleased that day about how much more tax I'd have to pay, as it was much less than I expected.

Is the same now true of the austerity measures due to be announced this Autumn? Will there be 40% cuts in front line services and 600,000 public sector workers unemployed by April 2011? Or will we end up feeling like we've all had a lucky escape again?

Hi there, when was ni scrapped and made into one tax?. my husband still pays ni as a seperate deduction on his pay slips.

mbga9pgf

No, reserve your seat in the bunker and bring all the beans you can carry

chucky wrote: »

you got more chance of your ALT-A ticking time bomb going off than 40% cuts...

http://online.wsj.com/article/BT-CO-20100806-715942.html

Moody's Investors Service downgraded $2.3 billion in securities backed by Alt-A residential mortgages as the loans continue to sour.
The residential mortgage-backed securities, or RMBS, were issued by MASTR Alternative Loan Trust and MASTR Adjustable Rate Mortgages Trust in 2006 and 2007.
Moody's has downgraded hundreds of billions of dollars of RMBS in recent months as credit raters have steadily cut ratings on mortgage-backed securities, revising the amount of losses expected as their credit quality sours on falling home prices, high unemployment and the slow economy.
On Friday, the ratings service downgraded 72 tranches, upgraded three and confirmed three from eight RMBS transactions that were backed by Alt-A loans.
RMBS helped feed the housing boom and wound up in the hands of investment funds or in more complicated pools known as collateralized debt obligations, in which underlying mortgage pools were further sliced into tranches according to their perceived risk. Alt-A loans are typically given to prime-rated borrowers who didn't document assets and/or income.

Where is your recovery chucky? :cool:

I bet you werent expecting the US government to be bailing out mortgages still in 2010-2011 back when this started in 2007....


If I am wrong in November, go ahead. But mark myt words, october-november will be the worst months of this electoral term in terms of public sentiment.