Spending Review 2010: The calm before the cuts.

Posted on: 20 October 2010 by Mark O'haire

As George Osborne reveals what's being cut, where and when, we need to remember that we don't have much of a choice either way.

The scene is set and the media is in place; cars are leaving Downing Street; the MPs are hurrying their lunch and in a little while George Osborne will start his speech announcing the content of the 2010 Spending Review. He’ll more than likely talk for about 90 minutes after which we will all be able to see just how it affects us and our  families. Whatever the result the medicine is going to be tough to swallow! Is there another way? More than likely, not. If the UK was a patient, it would be very ill and in  need of drastic treatment. This scenario would, in any case, have to happen, irrespective of who won the last General Election.

If Labour had had their way we would spread the pain over 10 years and protect jobs. Even though some economists believe this would work, there are many more that think this would result in higher interest rates and a weak pound. As well as spreading the debt, it would also increase the amount of interest we would have to pay back. The net effect would still be a lowering of our living standards.

The coalition government’s model is to make the cuts quick and deep; restore confidence in the international marketplace and show we still mean business. The deepest cuts will mainly be in the public sector and, when it comes to job losses, they will be civil servants. These cuts will hopefully stop the over-staffing in government departments and stop the waste that has grown at a staggering rate during 13 years of Labour government.

As these cuts work through the economy, the job losses will spread into the private sector as the government reduces spending. The coalition's hope is that the economy will naturally recover and create new jobs to replace them. Time will tell!

One thing is for sure. We are in for a tough decade ahead of us and there is no way of avoiding it. So folks, until we know all the grisly details,  we can still live in hope – enjoy! As Harold  Macmillan said, ‘You have never had it so good!’ It’s just sad that it had to end.

PS: Mr Cameron, here at 50connect we’ve managed to create 10 new jobs in the past year – do we get a prize?

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