12 May 2010

Conservative-Liberal Democrat government of austerity

or so it seems. Given imminent reports of the end of talks between Labour and the Liberal Democrats.

The incoming government will have one priority, addressing the budget deficit. It should do so with alacrity, and with a clear vision to strip out as much unnecessary spending as possible. It should not treat any budget area as sacrosanct. It may wish to delay tax cuts, but it should not increase taxes. However, I fully expect an increase in VAT and fuel duty at the very least, thieving bastards.

What it will mean is significant layoffs in the public sector, freezes for public sector pay, significant culling of public sector pensions, and the end to the wishlists of the many seeking money that does not exist.

It will also mean that the budgets of Scotland, Wales and Northern Ireland will all be hit, despite the moans and groans of the socialist parties that largely represent those communities.

The LibDems will automatically lose popularity as leftwing supporters are upset about the inevitable, which was that the party would choose one of the major parties to support. However, both parties will cause an upset, since both barely touched the issue of the £100 billion deficit, with at best plans to deal to a tenth of that. The British voting public have both been deceived and wanted to be deceived.

They are about to face reality almost Greek style, they wont like it, and the Labour Party is waiting there to show sympathy, even though the Labour Party is mostly responsible for the problem in the first place.

I expect within weeks an "opening of the books" exercise of reality on the deficit, highlighting how bad things are, what happens if it is not addressed and pointing the finger of blame squarely at Gordon Brown and Labour. The Lib Dems will join in on this as well. Labour will seek to sidestep this, but it will be difficult to deny the truth of deficits year on year, and how the bailing out of the banks is only part of the reason for it.

The only question remaining for now is whether it is a coalition or a minority government. Either way, it wont be very popular very long. The answer will depend on what the Liberal Democrats decide.


KG said...

The new style of government will be policy paralysis. There's just no way in hell Cameron will get what needs to be done past the Lib-Dems, no matter what concessions he makes.

KG said...

Two days later...as above!