The end of austerity?

Thrugelmir

Forget GDP ratios. This is all about fiscal management and balancing the books, i.e income equalling expenditure. Restructuring is a long slow process. Far worse to achieve in the public than private sector as there's still the old cultural issues blocking progress.

Worth remembering that savings aren't immediate. Reducing headcount comes at a cost. Upfront redundancies payments. The saving in salaries and pension liabilities follows over the years to come.

Sizable further (public sector) pension reforms are planned from April 2018. So the quest for cost reductions is relentless.

michaels

Thrugelmir wrote: »

Forget GDP ratios. This is all about fiscal management and balancing the books, i.e income equalling expenditure. Restructuring is a long slow process. Far worse to achieve in the public than private sector as there's still the old cultural issues blocking progress.

Worth remembering that savings aren't immediate. Reducing headcount comes at a cost. Upfront redundancies payments. The saving in salaries and pension liabilities follows over the years to come.

Sizable further (public sector) pension reforms are planned from April 2018. So the quest for cost reductions is relentless.

But a lot of govt expenditure goes 'straight out the door' to pensioners, benefits recipients and the NHS and where savings are impossible and indeed expenditure is likely to increase with demographics and any deterioration in the economy. Factor in no tax increases (and indeed business tax cuts to encourage business to locate in non-EU UK) and that leaves an awful lot of reductions to non-protected department budgets - perhaps even 100% cuts to these budgets would not be enough.....

Tromking

Thrugelmir wrote: »

Forget GDP ratios. This is all about fiscal management and balancing the books, i.e income equalling expenditure. Restructuring is a long slow process. Far worse to achieve in the public than private sector as there's still the old cultural issues blocking progress.

Worth remembering that savings aren't immediate. Reducing headcount comes at a cost. Upfront redundancies payments. The saving in salaries and pension liabilities follows over the years to come.

Sizable further (public sector) pension reforms are planned from April 2018. So the quest for cost reductions is relentless.

You ignore however the political ramifications of failing public services. Interested to know about further public sector pension reforms in 2018.

Thrugelmir

michaels wrote: »

But a lot of govt expenditure goes 'straight out the door' to pensioners, benefits recipients and the NHS and where savings are impossible and indeed expenditure is likely to increase with demographics and any deterioration in the economy. Factor in no tax increases (and indeed business tax cuts to encourage business to locate in non-EU UK) and that leaves an awful lot of reductions to non-protected department budgets - perhaps even 100% cuts to these budgets would not be enough.....

NHS is receiving 1% pay rises as is the public sector in general (until 2020). Benefits are being capped. The triple lock is under threat. As I said earlier change is slow and progressive. More than may be realised. As the changes don't make headlines. With inflation on the horizon there could be a squeeze on disposable income.

Thrugelmir

Tromking wrote: »

You ignore however the political ramifications of failing public services. Interested to know about further public sector pension reforms in 2018.

I see failings in the public sector everyday. Mainly cultural and historical in my personal view. So I do distinguish between failing services and the effective use of taxpayers money in providing the services. They are two different totally issues.

As far as pension schemes go. They need to be become self funding. There's some very generous schemes such as the Civil Services.

Lord_Baltimore

stator wrote: »

.....the lazy old generations who all retired at 60 and will live for another 40 years at our expense.

Would that be the same lazy old sods who fought for our freedom in ww2?

Tromking

Thrugelmir wrote: »

I see failings in the public sector everyday. Mainly cultural and historical in my personal view. So I do distinguish between failing services and the effective use of taxpayers money in providing the services. They are two different totally issues.

So for example no correlation for you with 6 years of cuts to the justice dept. and the current state of the prison service?

Thrugelmir wrote: »

As far as pension schemes go. They need to be become self funding. There's some very generous schemes such as the Civil Services.

So the civil service pension scheme is to be self funding from 2018?
I`ve missed that one.

StevieJ

stator wrote: »

Freezing/cutting the state pension (but not the means tested pension credit) would solve a lot of problems very quickly.
It's a shame it's the Tories in government who aren't willing to do what needs to be done. Instead more young/poor/disabled people will be victimised/made homeless to help subsidise massive benefits for the lazy old generations who all retired at 60 and will live for another 40 years at our expense.

You mean the majority of Brexit voters?

StevieJ

Lord_Baltimore wrote: »

Would that be the same lazy old sods who fought for our freedom in ww2?

Unlikely as nearly all of them are dead.

chucknorris

stator wrote: »

Freezing/cutting the state pension (but not the means tested pension credit) would solve a lot of problems very quickly.
It's a shame it's the Tories in government who aren't willing to do what needs to be done. Instead more young/poor/disabled people will be victimised/made homeless to help subsidise massive benefits for the lazy old generations who all retired at 60 and will live for another 40 years at our expense.

Statistics aren't your strong point, are they?