Tuesday, November 11, 2008

How to cut spending, and tax without affecting public services!

Here is a quick "How to" or "howto" cut public spending by 5% without hurting so much as a fly, or making one nurse, doctor, teacher, police person or indeed diversity officer redundant, and therefore pass this on in tax cuts.

It also has the great benefit of allowing the various departments of government, local government, quangos and all to plan more responsibly whilst getting better value for money for our cash!

Its a bit of a win win all round, but with one small catch which I will come on to later. Here is the plan;

End the hideously stupid rule that any budget needs to be spent by the end of the budget period or else not only will that money be lost but the next years budget will be lowered by the underspend.

This will stop government departments year end blow outs, incentivise them to look for value and allow them to roll over budget surpluses to spend on larger projects.

The one downside is that private companies that look to grab March spending splurges will be hit and that will have a knock on effect.

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