Poorest families to bear the brunt of £25m spending cuts.

[Guest Guest 47403]

Again the tories will hit the poorest and most needy to fuel their £25m spending cuts during 2015. Why doesn't this surprise anyone.

 

The tories also hint at a possible tax reduction on the 45% bracket. Why doesn't that surprise anyone. The party of the rich.

 

Yes those earning more than £65,000 a year should be in a position to afford to live in private housing.

 

http://www.bbc.co.uk/news/uk-politics-25617844

 

George Osborne targets welfare as he warns of £25bn more cuts

 

 

 

Chancellor George Osborne warns 2014 will be a "year of hard truths"

 

 

 

A further £25bn spending cuts - much of it from the welfare budget - will be needed after the next election, Chancellor George Osborne has warned.

 

 

He said more austerity lay ahead, as the job was "not even half done".

 

 

He suggested making welfare savings by cutting housing benefit for under-25s and restricting council housing for those earning over £65,000 a year.

 

 

But Deputy Prime Minister Nick Clegg said targeting the working-age poor was "extreme... unrealistic and unfair".

 

 

The Lib Dem leader said he had a "very different vision" from the Conservatives about how to balance the books during the next Parliament and believed the wealthy should pay more in tax.

 

 

The £25bn figure is in line with the already announced intention to balance the government's books by 2018. It suggests cuts will continue at the same rate as during the current Parliament.

 

 

BBC political editor Nick Robinson said Mr Osborne's announcement was as much about politics as economics.

 

 

Mr Osborne, he said, "wants to to set the political baseline for the economic argument in the run up to the next general election", in the process setting a test for both the Lib Dems and Labour.

 

 

'Long way to go'

 

In his speech, Mr Osborne warned the welfare budget could not "be protected from further substantial cuts", saying he was beginning "not ending" a debate on the "difficult choices" that he believed had to be made.

 

 

Only by reducing welfare, he suggested, could a future government avoid either spending cuts in areas such as education, "big tax rises", or increased borrowing.

 

 

Mr Osborne has argued the savings needed after 2015 can be found entirely from spending cuts, with welfare accounting for about half of the £25bn targeted - the remainder coming from a further squeeze on departmental budgets.

 

 

Although the chancellor said the government's economic strategy was working, with the deficit down by a third since 2010, he warned that the job of repairing the public finances would take many more years.

 

 

"It is too early to say the job is done," he said. "It is not even half done."

 

 

The UK, he said, was "borrowing around £100bn a year - and paying half that money a year in interest just to service our debts".

 

 

'Ideological'

 

He added: "We've got to make more cuts. That's why 2014 is the year of hard truths - the year when Britain faces a choice.

 

 

"Do we say 'the worst is over, back we go to our bad habits of borrowing and spending and living beyond our means and let the next generation pay the bill'?

 

 

 

"Or do we say to ourselves 'yes, because of our plan, things are getting better - but there is still a long way to go and there are big, underlying problems we have to fix in our economy'?"

 

 

Asked earlier if some pensioner benefits could be means-tested the chancellor told BBC Radio 4's Today programme the Conservatives' values had not changed, suggesting they would continue to support all pensioners getting things like the winter fuel allowance, irrespective of income.

 

 

He said changing universal benefits for pensioners would save only "tens of millions" of pounds.

 

 

Issues that he did highlight as possible areas for savings were the payment of housing benefit to people aged under 25 and also people living in council houses while earning more than £65,000 a year.

 

 

The government estimates between 11,000 and 21,000 social tenant households have incomes of more than £60,000 a year and should pay a level of rent which "better reflects what they can afford".

 

 

Nick Robinson said the amount that could be recouped from well-off council-house dwellers was "not huge".

 

 

While housing benefit for under-25s was a larger expense - it costs about £2bn a year - he said it was nowhere near the total savings the chancellor was suggesting.

 

 

At his monthly news conference, Mr Clegg said the "black hole" in the government's finances needed to be addressed and he fully supported the government's aim of eliminating the structural deficit by 2017-8.

 

 

But he said he strongly opposed welfare cuts on a scale set out by Mr Osborne and said his party would set out its own plans in due course to do it in a "fairer way".

 

 

Expecting "all future sacrifices [to come] from the working poor who are dependent on welfare" was "unrealistic and unfair", he said.

 

 

The plans, he added, showed the Conservatives wanted to "remorselessly pare back the state for ideological reasons" and make "cuts for cuts sake".

 

 

Deputy Prime Minister Nick Clegg: "You have to spread the burden as fairly as possible"

 

 

 

Labour say they would match the government's overall spending plans in 2015-6 but would have different priorities from the coalition.

 

 

Shadow chancellor Ed Balls said: "George Osborne is desperate to stop talking about the cost-of-living crisis on his watch. But that won't stop working people from doing so as they are on average £1,600 a year worse off under the Tories and prices are still rising faster than wages.

 

 

"Nor will the chancellor admit the reason why he is being forced to make more cuts is because his failure on growth and living standards has led to his failure to balance the books by 2015.

 

 

"This failure means Labour will have to make cuts and in 2015-16 there will be no more borrowing for day-to-day spending.

 

 

 

"But we will get the deficit down in a fair way, not give tax cuts to millionaires. And we know that the way to mitigate the scale of the cuts needed is to earn and grow our way to higher living standards for all."

 

 

The TUC said the level of cuts proposed by Mr Osborne would "cause real pain to hard-working people" but the CBI said the government's strategy of tackling the deficit and boosting growth was "beginning to reap some positive results".

 

 

The Institute for Fiscal Studies says the £25bn spending cuts target looks "tough" to achieve, particularly if a future government continues to ringfence spending on the health service and schools in England, as well as protecting pensions.

 

 

On Sunday, David Cameron promised older voters the state pension would continue to rise by at least 2.5% a year if the Conservatives won the next election.

 

 

How government department budgets have been cut:

[ABL275]

Oh dear, more socialist propaganda from the BBC?

 

Why don't they just rename themselves Pravda?

[Guest Guest 47403]

Socialist propaganda how please explain? This is George Osbourne a member of the Tory party who is suggesting this!

[akiralx]

'He suggested making welfare savings by cutting housing benefit for under-25s and restricting council housing for those earning over £65,000 a year.'

 

I tend to agree with both.

[Que Sera Sera]

Typical Tory policies , not at all surprising really, of course "as its down to Labours overspending " it's asbsolutly acceptable to hit the worse off with ridiculous cuts I mean why should the wealthy Tory voters have to pay!:mask:

[newjez]

The only way they will balance the books is to means test pensions and the NHS. Only a matter of time IMHO. After the 2015 election. Too gutless to bring it up before.

[gpo1971]

Yeah, I'd agree. Middle income earners and above won't be getting those in about 10-15 years IMO.

[flag of convenience]

Oh dear, more socialist propaganda from the BBC?

 

Why don't they just rename themselves Pravda?

 

Just amazes me that any critique of attacks on the vulnerable in society is all too often given the catch phrase of socialist propaganda. Actually the cuts should be focused on those that can shoulder reductions with ease. Middle class welfare and the ever declining tax paid by the rich. And yes a more socialist agenda with discipline would ensure a fairer and better society for all in the longer term.

[flag of convenience]

'He suggested making welfare savings by cutting housing benefit for under-25s and restricting council housing for those earning over £65,000 a year.'

 

I tend to agree with both.

 

I agree with the latter, but restricting welfare for under 25's is hardly the answer if not taken on a case by case basis. A blanket ban certainly is unacceptable.

[VERYSTORMY]

The reality is that demographics are changing and economics are changing. So all countries are going to have to slash budgets. What we are seeing is a fraction of what will come in all economies as all recognize that unlimited spending simply means a debt that can not be supported. So, spending is going to have to be slashed. There will be some hard choices to come for all of us. But the state as we know it will simply not be there.

 

As for the tax cuts for the 45% rate, I agree with it. It is overly penalizing people for bettering themselves. If you make 100k a year you are paying more tax just in the 45% bracket than the average tax payer is paying in entirety. How is that fair? Particularly when in London 100k is not by any means a "rich" income? If those on 30k think they are paying they fair share on that rate and the person on 100k who would pay several times the tax of the 30k really be right? It is just old labour petty jealousy based on tall poppy syndrome.

 

Personally, I think the middle class benefits are the ones to cut immediately.

[flag of convenience]

The reality is that demographics are changing and economics are changing. So all countries are going to have to slash budgets. What we are seeing is a fraction of what will come in all economies as all recognize that unlimited spending simply means a debt that can not be supported. So, spending is going to have to be slashed. There will be some hard choices to come for all of us. But the state as we know it will simply not be there.

 

As for the tax cuts for the 45% rate, I agree with it. It is overly penalizing people for bettering themselves. If you make 100k a year you are paying more tax just in the 45% bracket than the average tax payer is paying in entirety. How is that fair? Particularly when in London 100k is not by any means a "rich" income? If those on 30k think they are paying they fair share on that rate and the person on 100k who would pay several times the tax of the 30k really be right? It is just old labour petty jealousy based on tall poppy syndrome.

 

Personally, I think the middle class benefits are the ones to cut immediately.

 

Although as discussed on previous posts a one tax rate for all, which you tend to favour, favours the rich and does little to assist the lower paid. Rich have enough advantages as stands.

[paulv]

Only on PIO can a story about government cuts be classed as 'socialist propaganda'!

Here is a study breaking down how often Pravda, sorry BBC, air the views of the political parties.

 

https://theconversation.com/hard-evidence-how-biased-is-the-bbc-17028

 

It's 4-1 in favour of the government in some cases - hardly a socialist utopia...

 

As for the cuts, regardless of your political leanings studies show that those countries with the least disparity between the richest and the poorest have the best health outcomes, educational outcomes, least crime, lowest mental health illness rates, highest levels of satisfaction, and best social cohesion. Sounds idyllic huh?

[VERYSTORMY]

Although as discussed on previous posts a one tax rate for all, which you tend to favour, favours the rich and does little to assist the lower paid. Rich have enough advantages as stands.

 

Yes I favor that. But we are not talking about rich. £65k is not rich in London.

[flag of convenience]

Only on PIO can a story about government cuts be classed as 'socialist propaganda'!

Here is a study breaking down how often Pravda, sorry BBC, air the views of the political parties.

 

https://theconversation.com/hard-evidence-how-biased-is-the-bbc-17028

 

It's 4-1 in favour of the government in some cases - hardly a socialist utopia...

 

As for the cuts, regardless of your political leanings studies show that those countries with the least disparity between the richest and the poorest have the best health outcomes, educational outcomes, least crime, lowest mental health illness rates, highest levels of satisfaction, and best social cohesion. Sounds idyllic huh?

 

I'm afraid it is the same in OZ with a certain element labelling our ABC on similar terms. Any notion of fairness for the vulnerable in our society and for those that constantly increase their pile to contribute a little more is met with derision from right wingers as being a socialist attack on neo liberal values. They seem to conveniently forget the concept in place to allow a safety net was put in place as a safe guard for all in society.

[simmo]

Only on PIO can a story about government cuts be classed as 'socialist propaganda'!

Here is a study breaking down how often Pravda, sorry BBC, air the views of the political parties.

 

https://theconversation.com/hard-evidence-how-biased-is-the-bbc-17028

 

It's 4-1 in favour of the government in some cases - hardly a socialist utopia...

 

 

and in the blue corner!!

http://biasedbbc.org/quotes-of-shame/

[flag of convenience]

Yes I favor that. But we are not talking about rich. £65k is not rich in London.

 

While not rich still a fair whack. London got out of hand due to excessive earnings, resulting in further greed. A better call would be how to allow London to return to being a city for al to reside in and not a few on massive salaries.

[Gbye grey sky]

The reality is that demographics are changing and economics are changing. So all countries are going to have to slash budgets. What we are seeing is a fraction of what will come in all economies as all recognize that unlimited spending simply means a debt that can not be supported. So, spending is going to have to be slashed. There will be some hard choices to come for all of us. But the state as we know it will simply not be there.

 

As for the tax cuts for the 45% rate, I agree with it. It is overly penalizing people for bettering themselves. If you make 100k a year you are paying more tax just in the 45% bracket than the average tax payer is paying in entirety. How is that fair? Particularly when in London 100k is not by any means a "rich" income? If those on 30k think they are paying they fair share on that rate and the person on 100k who would pay several times the tax of the 30k really be right? It is just old labour petty jealousy based on tall poppy syndrome.

 

Personally, I think the middle class benefits are the ones to cut immediately.

 

Actually the 45% rate kicks in for all Taxable earnings above £150,000 so even if you are paid £200k per annum the max additional tax paid is £2000pa after personally allowances. There are plenty of ways to mitigate this however perfectly legitimately so you would probably need to get £200k plus per before you had to concern yourself with the 45% rate. I would argue that even in London £200k is a rich income. If you get over £200k per annum the chances are that you are bettering yourself at the expense of others less fortunate.

 

Agree with your other points though.

[paulv]

and in the blue corner!!

http://biasedbbc.org/quotes-of-shame/

 

A bit weird stalking me this early but thanks for coming anyhoos:biglaugh:

[simmo]

A bit weird stalking me this early but thanks for coming anyhoos:biglaugh:

 

personal insults again.. ?

classy..

[abz123]

Actually the 45% rate kicks in for all Taxable earnings above £150,000 so even if you are paid £200k per annum the max additional tax paid is £2000pa after personally allowances.

 

I hope you are not involved in Treasury forecasts:

 

45% of 50,000 is 22,500.

 

[Guest Guest 47403]

And the fascist, right wing, knuckle dragger, blue corner (what ever you want to call it)

 

http://www.dailymail.co.uk/money/news/article-2534621/George-Osborne-Britains-economy-face-25bn-spending-cuts.html

 

George Osborne: Britain needs £25bn in spending cuts and young will bear the burden with housing benefit for under-25s facing the axe

 

 

 

• The economy will face £25bn in welfare spending cuts
  
• Over £60bn will be slashed from Government spending over four years
  
  
• A new 'charter for budget responsibility' could be introduced
  
  

 

 

 

 

 

Britain’s economy will face a further £25billion in spending cuts over the next two years, the Government has warned today.

 

 

The Chancellor George Osborne outlined his plan to cut more than £12billion-a-year-from welfare, but hinted that he will not do it by raising taxes or cutting public services.

 

 

In a speech in the West Midlands, Osborne said he planned to slash £60billion from government spending over the next four years to 2018 and address the welfare budget.

 

 

 

George Osborne: Britain should never return to the levels of spending of the last government

 

 

 

 

In sweeping reforms, Osborne's austerity measures signal a difficult time ahead as he reins in spending from the country’s purse strings.

 

 

He said: ‘If 2014 is a year of hard truths for our country, then it starts with this one: Britain should never return to the levels of spending of the last government.

 

 

‘We’d either have to return borrowing to the dangerous levels that threatened our stability, or we’d have to raise taxes so much we’d put our country out of business. Government is going to have to be permanently smaller – and so too is the welfare system.'

 

He added: ‘When I took this job, Britain was borrowing more than £400 million every single day to pay for government spending. But as a result of the painful cuts we’ve made, the deficit is down by a third and we’re borrowing nearly £3,000 less for every one of you and for every family in the country.

 

 

In other plans, the Chancellor will ask parliament to pass a ‘charter for budget responsibility’ so that future governments will not be able to increase spending when borrowing falls.

 

 

He said: ‘Some say they’d deal with the deficit, but they shy away from committing to numbers. So this year, we’re going to ask Parliament to vote on these plans. I want our country’s commitment to economic stability entrenched.'

 

 

‘Even after we’ve reduced the amount we borrow each year that still leaves us with a high debt from all the past borrowing.

 

‘That debt leaves Britain vulnerable – and I want to make us safe.

 

 

On the dole: Osbourne said that the Government is going to have to be permanently smaller and so too is the welfare system

 

 

 

 

‘So I’m going to ask Parliament to vote too this year on a new charter for budget responsibility that will commit us to reducing those debts.

 

 

‘It means not spending again when borrowing falls, including using surpluses in good years to reduce debt – so in future, we fix the roof when the sun is shining.

 

 

‘These votes will force Parliament to make a choice and confront the truth,' Osborne said.

 

 

The Chancellor’s speech took place at the headquarters of Sertec, an automotive components manufacturer in Colehill, Birmingham, which he praised for creating 400 new jobs over the next four years.

 

 

Yet, despite the Chancellor’s assurances that Britain’s economy ‘was on the rise’ he acknowledged that there were still problems.

 

The Government wants to deal with the deficit with a series of reforms.

 

 

These include the removing housing benefit from under-25s and high earners making £60,000 or more a year being banned from having a council house.

 

 

Another hot button topic is pensioner’s benefits which Osborne made clear he would prefer to protect for the over-65s.

 

 

But the Tory party is split over this, with David Cameron 'minded' to protect them beyond the election and Work and Pensions Secretary Iain Duncan Smith, arguing it is wrong to give the winter fuel allowance and free bus pass to wealthy pensioners while cutting help for less well-off families.

 

 

Elsewhere, Osborne promised good news for workers who have faced hard times, targeting their wage packets this April.

 

 

He announced plans to increase the tax-free allowance to £10,000 which means an extra £60 or so a month for the typical worker.

 

 

He will also freeze fuel duty again this year, so cars will cost £11 less to fill up than it would have done. And in 2015, there will be tax free childcare to help working families.

 

 

In a veiled attack on Labour and the Liberal Democrats, Osborne criticised both parties for wanting tax rises and spending cuts to balance the books.

 

 

He added: ‘Our country was in a real mess a few years ago – more so than almost any other major country in the world… It’s why getting the right plan – and holding to it – is so important.

 

 

'We’ve got the right plan now. It’s a long term plan for turning our country around. The plan is working. For the first time in a long time, there’s a real sense that Britain is on the rise.’

[Guest Andy]

And the fascist, right wing, knuckle dragger, blue corner (what ever you want to call it)

 

http://www.dailymail.co.uk/money/news/article-2534621/George-Osborne-Britains-economy-face-25bn-spending-cuts.html

 

George Osborne: Britain needs £25bn in spending cuts and young will bear the burden with housing benefit for under-25s facing the axe

 

 

 

• The economy will face £25bn in welfare spending cuts

• Over £60bn will be slashed from Government spending over four years

   

• A new 'charter for budget responsibility' could be introduced

   

 

 

 

 

 

Britain’s economy will face a further £25billion in spending cuts over the next two years, the Government has warned today.

 

 

The Chancellor George Osborne outlined his plan to cut more than £12billion-a-year-from welfare, but hinted that he will not do it by raising taxes or cutting public services.

 

 

In a speech in the West Midlands, Osborne said he planned to slash £60billion from government spending over the next four years to 2018 and address the welfare budget.

 

 

 

George Osborne: Britain should never return to the levels of spending of the last government

 

 

 

 

In sweeping reforms, Osborne's austerity measures signal a difficult time ahead as he reins in spending from the country’s purse strings.

 

 

He said: ‘If 2014 is a year of hard truths for our country, then it starts with this one: Britain should never return to the levels of spending of the last government.

 

 

‘We’d either have to return borrowing to the dangerous levels that threatened our stability, or we’d have to raise taxes so much we’d put our country out of business. Government is going to have to be permanently smaller – and so too is the welfare system.'

 

He added: ‘When I took this job, Britain was borrowing more than £400 million every single day to pay for government spending. But as a result of the painful cuts we’ve made, the deficit is down by a third and we’re borrowing nearly £3,000 less for every one of you and for every family in the country.

 

 

In other plans, the Chancellor will ask parliament to pass a ‘charter for budget responsibility’ so that future governments will not be able to increase spending when borrowing falls.

 

 

He said: ‘Some say they’d deal with the deficit, but they shy away from committing to numbers. So this year, we’re going to ask Parliament to vote on these plans. I want our country’s commitment to economic stability entrenched.'

 

 

‘Even after we’ve reduced the amount we borrow each year that still leaves us with a high debt from all the past borrowing.

 

‘That debt leaves Britain vulnerable – and I want to make us safe.

 

 

On the dole: Osbourne said that the Government is going to have to be permanently smaller and so too is the welfare system

 

 

 

 

‘So I’m going to ask Parliament to vote too this year on a new charter for budget responsibility that will commit us to reducing those debts.

 

 

‘It means not spending again when borrowing falls, including using surpluses in good years to reduce debt – so in future, we fix the roof when the sun is shining.

 

 

‘These votes will force Parliament to make a choice and confront the truth,' Osborne said.

 

 

The Chancellor’s speech took place at the headquarters of Sertec, an automotive components manufacturer in Colehill, Birmingham, which he praised for creating 400 new jobs over the next four years.

 

 

Yet, despite the Chancellor’s assurances that Britain’s economy ‘was on the rise’ he acknowledged that there were still problems.

 

The Government wants to deal with the deficit with a series of reforms.

 

 

These include the removing housing benefit from under-25s and high earners making £60,000 or more a year being banned from having a council house.

 

 

Another hot button topic is pensioner’s benefits which Osborne made clear he would prefer to protect for the over-65s.

 

 

But the Tory party is split over this, with David Cameron 'minded' to protect them beyond the election and Work and Pensions Secretary Iain Duncan Smith, arguing it is wrong to give the winter fuel allowance and free bus pass to wealthy pensioners while cutting help for less well-off families.

 

 

Elsewhere, Osborne promised good news for workers who have faced hard times, targeting their wage packets this April.

 

 

He announced plans to increase the tax-free allowance to £10,000 which means an extra £60 or so a month for the typical worker.

 

 

He will also freeze fuel duty again this year, so cars will cost £11 less to fill up than it would have done. And in 2015, there will be tax free childcare to help working families.

 

 

In a veiled attack on Labour and the Liberal Democrats, Osborne criticised both parties for wanting tax rises and spending cuts to balance the books.

 

 

He added: ‘Our country was in a real mess a few years ago – more so than almost any other major country in the world… It’s why getting the right plan – and holding to it – is so important.

 

 

'We’ve got the right plan now. It’s a long term plan for turning our country around. The plan is working. For the first time in a long time, there’s a real sense that Britain is on the rise.’

 

 

Well they are your words baz, would you call "right wingers" or tory voters knuckle dragging fascists?

[simmo]

Well they are your words baz, would you call "right wingers" or tory voters knuckle dragging fascists?

 

weird isn't it that all the name calling and insults comes from the left.

[Guest Guest 47403]

Well they are your words baz, would you call "right wingers" or tory voters knuckle dragging fascists?

 

Not all andy, but there is no doubt some right wingers are knuckle dragging fascists just depends how far right your willing to go.

[Gbye grey sky]

I hope you are not involved in Treasury forecasts:

 

45% of 50,000 is 22,500.

 

[ATTACH=CONFIG]22665[/ATTACH]

 

Only if you are advocating that it should be a nil tax rate over £150k. I was referring to the difference between 40% and 45% tax rate.