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The Coalition Government ( POLL )

Steve
Seasoned Pro
Posts: 6,685
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Registered: 13-07-2009

The Coalition Government ( POLL )

The new government for me is a backward step in british history in my opinion, Should there of been a re-vote? All this talk of cuts, cuts, cuts, and more cuts, A second budget on the cards just infuriates me, And is Mr Cameron just a scaremongerer?
Quote
George Osborne's emergency budget will usher in the longest era of cuts to spending on public services in post-war history, according to the Institute for Fiscal Studies.
The respected thinktank's keenly awaited analysis of the new government's spending cuts and tax hikes also questioned Osborne's claims of fairness.
IFS director Robert Chote said the claim that the budget was "progressive" was debateable.
He believes Britain is looking at "the longest, deepest, sustained period of cuts to public services spending at least since the second world war".
Osborne's first budget yesterday imposed austerity measures on every family in Britain. He announced a £40bn package of emergency tax increases, welfare cuts and Whitehall spending restraint designed to slash the budget deficit by the end of the parliament.
The chancellor said the "unavoidable budget" required a VAT rise from 17.5% to 20% next January, higher capital gains tax, a levy on banks, a two-year public sector pay freeze and less generous benefits, but insisted the package was needed to prevent the financial markets from turning on Britain.
The City did appear to welcome the budget's focus on cutting the deficit sooner rather than later, with ratings agencies commending Osborne's plans. Today, Moody's said the proposals were "supportive" of Britian keeping its coveted, top-notch AAA rating. That followed Fitch's comments yesterday that if delivered upon, the budget would "materially strengthen confidence in UK public finances and its AAA status".
Moody's described the budget as "a key step towards reversing the significant deterioration in the government's financial position that occurred over the past two years".
"The budget confirmed the UK government's intention to eliminate the structural current deficit by 2015-16," said Moody's senior credit officer Kenneth Orchard. "Successful implementation would return the government's finances to a more sustainable trend."
Still, the ratings agency did highlight some risks around the budget, including the likely blow to domestic demand which it is assumed will be offset by robust growth in net exports and a decline in private sector net savings.
"Moody's believes these assumptions to be sound," said Orchard. "But it should be emphasised that, if these assumptions do not hold up, the decline in the deficit may be lower than assumed."
154 REPLIES
Community Veteran
Posts: 1,699
Registered: 30-07-2007

Re: The Coalition Government ( POLL )

Cuts, cuts and more cuts were on the way whoever got in.
As a public sector worker doing a job that needs to be done, (and can't legally be done by the private sector), I'm fed up with being told about all the benefits I have.  In the last 10 years, I've had year on year pay cuts (i.e. increases below inflation), my pension has been cut unilaterally (no-one asked if I wanted to renegotiate it) my pension contributions have increased from 6% of my gross salary to 7.2% of my gross salary. (I've asked this question on here before, but nobody gave an answer - how many private sector employees on here pay 7% of their salary into their pension?). I've been moved on to a "performance pay" contract without the option, which means that, it doesn't matter how you perform, there's no money in the pot to pay you any more, so you're stuck with the pay you get now (forever)
Every year we've been told to "do more with less". Job cuts, budget cuts and "downsizing" have been the norm for at least a decade. While the county councillors in Essex have awarded themselves an 8.2% pay rise, the staff get less than nothing.  OK many private sector employees on here will say, "so what, that's what we've had", but that's my point.  All this demonising of public sector employees, is merely a smokescreen to take people's minds off what's being done to them.  Give them someone else to hate (except politicians of course) and we can get away with anything.
Rant over
John
Steve
Seasoned Pro
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Registered: 13-07-2009

Re: The Coalition Government ( POLL )

Do you think Gordon Brown should have remained in power? I do and think we would of eventually seen good progress with him.
Community Veteran
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Registered: 12-08-2007

Re: The Coalition Government ( POLL )

It's difficult to know what else Osbourne could have done.  They inherited a major deficit which would have bankrupted the country if not dealt with. This was nothing to do with the world economic situation but reckless management of the economy by Labour.  Furthermore they didn't seem to have any answers as to what they would have done about it.
Community Veteran
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Registered: 16-02-2009

Re: The Coalition Government ( POLL )

Sad but it is too early to see if anything good can come out of it. I think we should have PR this idea that a party with 20% of the vote gets 50% of the seats is ridiculous. As an ex public sector worker who was unilaterally transfered to the private sector (we were outsourced all the IT section with the exception of the director etc, wonder why not them eh?) who then proceeded to make severe cuts into us, I think that you are lucky to still be in the public sector.
I don't see how Labor could have done any different if they were still in power, there is no money and unless we want rampant inflation then they cant just print money or borrow more. The main issues in this country is that it has gone from one of the major producers to one of a service sector. There is a limit on how much we can sell each other, without producing anything.
Personally I wouldn't have bailed the banks, they got themselves in trouble let them get themselves back out, all they have done is carry on like nothing happened and continue to give large bonuses all round ... Lets have a 90% tax on bonuses over say £5000, that would sort the buggers out!
Round here the AVERAGE wage is less than £300/wk, this is considered a GOOD wage  Crazy But a house/flat  is now £80k for a starter home how can anybody on £300/wk afford £80k?  Cry
I personally dislike the VAT increase but it could have been worse, they may have included more items in the VAT area, like FOOD which is largely VAT free (except chocolate goods)
johpal
Grafter
Posts: 550
Registered: 20-04-2008

Re: The Coalition Government ( POLL )

It was a tough call for whoever came to power.
What sticks in my craw that the Lib-Dems could ever have considered climbing into bed with the Conservatives. Hell will freeze over before I so much as listen again to their pathetic rhetoric, or consider voting for them. The last thing I could imagine myself doing was to agree with Harriott Harman, but it does look like the Lib-Dems have made themselves appear grubby, grasping individuals, clambering for the chauffeur-driven, ministerial cars, at any cost.
Lib-Dems? Toast!  Crazy
SRD
Grafter
Posts: 300
Registered: 29-04-2010

Re: The Coalition Government ( POLL )

Quote from: artmo
It's difficult to know what else Osbourne could have done.  They inherited a major deficit which would have bankrupted the country if not dealt with. This was nothing to do with the world economic situation but reckless management of the economy by Labour.  Furthermore they didn't seem to have any answers as to what they would have done about it.
I agree with the inheritance bit, but the Tories are intending to reduce that deficit in 5 years rather than over a more sensible period, that doesn't make economic sense, such savage cuts would be acceptable if everyone was bearing their share of the burden, but they aren't, those on family incomes under £20k are being far harder hit than those on incomes over £100k, this isn't an economic budget it's a political one; ensuring that the wealthy no longer have to contribute to the poor.  There is no evidence thaty the wealthy will actually spend their extra money in this country, in fact most evidence suggests that the money will be taken offshore.  This will add to the impoverishment of this country.
P.S. I totally agree johpal, as someone who voted tactically I know I made a major mistake, never again, I suspect the LDs will be wiped out at the next election.
Community Veteran
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Registered: 30-07-2007

Re: The Coalition Government ( POLL )

@johpal
I'm not a supporter of any political party as such, but I'm not sure what choice the Lib Dems had.  Support the Tories, or support a bankrupt Labour party that had lost it's mandate.  Either way, they had to side with someone, or just leave it that we would have another general election pretty much immediately with all of the damage and cost that, that would entail.  At least they made a choice, and are attempting to make it work.
Clegg said at the party's conference that he wouldn't be a "king maker", but anyone with any sense could see that, in the event of a close election, that's exactly what he would be,
John
itsme
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Re: The Coalition Government ( POLL )

Quote from: hulls
how many private sector employees on here pay 7% of their salary into their pension?).

I'm assuming that you still have a final salary index link pension? The private sector is not prepared to risk, even with increased employee contributions, final salary schemes. Most have converted to pension purchase schemes as this remove the company's liability to make good shortfall in the pension pool.
Community Veteran
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Registered: 24-09-2008

Re: The Coalition Government ( POLL )

Quote
Personally I wouldn't have bailed the banks, they got themselves in trouble let them get themselves back out

@Hairy Biker:- agree entirely,
If the government had let “Northern Rock” fail, stuck to the FSA and BOE remit of reimbursing up to the first £35k of savings. It would have sent a shockwave throughout the entire financial sector to administer there own problems.
The  “cash for bangers” scheme just put of the day when we realise the motor industry is producing too many cars, and why cash back on boilers, do British taxpayers need to subsidise polish plumbers?.
Think the last government ‘really lost its way’ towards the end. With guys like yourself (going from Public to Private sector, yet basically doing the same job). The Labour government still managed to increase the public sector workforce by 2.2 million people between 1997 and 2010 then borrow money to pay the wages of those 2.2 million.
Some hard decisions need to be taken, I honestly don’t think the coalition have gone far enough….yet.
Community Veteran
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Registered: 16-02-2009

Re: The Coalition Government ( POLL )

All this talk of "Supporting the LD's" well yes they got 25% ish of the VOTES but only a handful of SEATS this is the MAIN issue I have with ANY government. They are not supporting the MAJORITY of the people just the majority of the seats. If we had had a LD government then maybe the budget would have been worse for some, but the torrys have to keep the people that support them, supporting them, so no major tax rises for the RICH  Crazy
It isn't as has been said that they pay much tax as it is, they probably pay less than joe average, and they get/have MILLIONS!
This 2 party system (Labour/Torry Torry/Labout) hasn't been working for years, it is time for change, but until we get PR then change will not happen, and it is in the main 2 party's advantage to keep the current sysem  Crazy
Community Veteran
Posts: 1,699
Registered: 30-07-2007

Re: The Coalition Government ( POLL )

Quote from: itsme

I'm assuming that you still have a final salary index link pension? The private sector is not prepared to risk, even with increased employee contributions, final salary schemes. Most have converted to pension purchase schemes as this remove the company's liability to make good shortfall in the pension pool.

I stand to be corrected, so please forgive me if I'm wrong, but as I understand it, what other firms have done, is to close off their present pension schemes to new entrants.  My pension was unilaterally altered two years ago to raise the amount I pay, and give me a lower pension at the end.  In any other field, you can't simply change a contract unilaterally.  If you bought a train ticket and, having turned up at the station was told, "Actually we need to charge you another £50 and by the way, we'll be dropping you two stations before the one you're booked to, and if you don't like it, well that's tough", then as a Trading Standards Officer, I'd be expecting a call to complain.
Yet, because "I pay your wages" (as if I don't pay the wages of Tesco's staff), we're expected to just accept it (and don't ask about unions they're about as useful as a chocolate teapot!)
John
SRD
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Re: The Coalition Government ( POLL )

There is, of course, a major difference between company and public service pensions, PS pensions are paid out of taxation not out of a saved fund, contributions go directly into the national budget (currently, for instance, the NHS is contributing over 2 million a year more than required to fund the NHS pension requirement whereas other departments are considerably underfunding their contribution), this is mainly to do with the numbers of civil servants in each department, with a reduction in civil service numbers the input to the tax pile is considerably reduced but this will have no effect whatsoever on pensions already agreed, so, with a decrease in civil servants, there will be an ever greater drain (relatively) on the public finances without any corresponding increase in funding, so the Tories have to find ways to reduce their PS pension obligations.  This has nothing to do with the crisis in private company pensions which are failing for a number of reasons, not least of which is the 'holidays' that companies have taken to their contributions alongside the 'crash' in stock markets due to the recession.  The first is culpable negligence on the behalf of both the companies and pension fund trustees and the second the fault of those who would bet recklessly with money that belonged to pension funds and not themselves, however, it is the beneficiaries of those funds who will suffer and not those who caused the problems in the first place.
Community Veteran
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Registered: 24-09-2008

Re: The Coalition Government ( POLL )

Quote
how many private sector employees on here pay 7% of their salary into their pension?).

I paid 12% of my salary into a private pension fund which was raided by Brown, then lost when the company went into liquidation because the pension fund raid wrecked the company.
At least public sector pensions are protected.
Community Veteran
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Re: The Coalition Government ( POLL )

Quote from: hulls
how many private sector employees on here pay 7% of their salary into their pension

LOADS.
Apart from a 1-year period early in my career (for which I get no pension at all) I have NEVER paid less than 10% and in latter years MUCH MUCH more - up to 40%. I have ALWAYS contributed the legal MAXIMUM that I was allowed to under the tax rules.
The result is a pittance compared to what I contributed and is maybe 25% of my final salary. So much for Maggie Thatcher etc. and "the market".  Angry
(my salary has, inflation adjusted, not changed much over the final 30 years of work in case you think there's a fiddle in there)
And if you think I retired early - I have my bus pass and I'm still working - self-employed.