Thursday, May 06, 2010

Bureaucrats prepare austerity plans for the UK

Whatever party wins the UK elections, the Treasury has prepared plans to cut spending drastically according to The Times.

In order to preserve the UK's credit rating, drastic measures are needed:

"Options drawn up by the Treasury and the Department for Work and Pensions in the past few weeks include means-testing child benefit, cutting disability and housing benefits and freezing all payments in cash terms. Freezing benefits for one year would save £4 billion while freezing them for a whole parliament would save £24 billion in the fifth year alone. "

Welfare is the priority, why? Because it is the single largest item of spending at £200 billion per annum. Yes you read right. The state spends £3300 in welfare per man, woman and child every year, which means it taxes about £5000 per adult to pay for the income of others.

The opportunities are enormous:

"Spending on social security benefits has shot up from £93 billion in 1997-98 to nearly £170 billion this year because of a growing number of elderly people, increased payments to lone parents and working families, and rising unemployment....Billions could be saved by means-testing child benefit, which goes to 7.5 million families at a cost of more than £11.7 billion. Officials are also looking at cuts to disability living allowance, which costs £11.3 billion, as well as setting housing benefit, which costs more than £20 billion, at a much lower level."

Do any of the main parties have half the courage to do any of this?

1 comment:

Anonymous said...

The tories wil do this. and more.