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10:40am Thursday 21st October 2010 in News By Leigh Robinson
THEY may have been some of the deepest cuts in public spending for decades, but the town’s most influential people say they are still confused over what will be happening and when.
Yesterday the Chancellor, George Osbourne, delivered the Government’s four-year spending review but business leaders in Swindon say there is still an air of mystery as to how it will effect them.
Among the key announcements that set tongues wagging at a meeting organised by the GWE Business West, where 20 business people gathered to watch the speech, were: 490,000 public sector jobs likely to be lost; the structural deficit is planned to be eliminated by 2015; there will be £7bn in additional welfare budget cuts; police funding is to be cut by four per cent a year; and that the retirement age to rise from 65 to 66 by 2020.
Swindon Council leader Rod Bluh said that there were no shock announcements in the review.
“I wouldn’t say that I was exactly happy with what I had heard but there wasn’t anything which surprised me,” he said.
“We had been told what was going to happen and now we shall have wait and see what the details are.”
Businessman Rikki Hunt said it was likely that if 490,000 jobs went in the public sector then the same number of people would lose their jobs in the private sector.
But he urged Swindon Council to take full advantage of any opportunities the spending review might bring.
“The Government is talking about building 150,000 new homes to help the social housing scheme, then I say build them here in Swindon. Let’s get on the bandwagon,” he said.
He also extracted a promise from Coun Bluh that the council would lead a taskforce of Swindon businesspeople to look at at possible opportunities for the town.
Other announcements included that administration costs were to be cut by £400m with 24 quangos axed; the Train To Gain programme is to be axed with university funding to be cut and reform of student tuition fees being reviewed.
However, there will be funding for 75,000 adult apprenticeships a year and this pleased Rob Beale, the chairman of the governors of Swindon College.
“I am pleased this funding is to continue because this is something we do particularly well in Swindon,” he said.
Nicky Alberry, the chairwoman of the GWE Business West, said she, too, was waiting to see what the details would be from the Chancellor’s office.
“But I am pleased the Chancellor spoke about the Government’s focus on growth which is essential to the economy,” she said.
Comments(27)
Jason4
says...
11:49am Thu 21 Oct 10
politicrat
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11:50am Thu 21 Oct 10
Mr Blackwell
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12:21pm Thu 21 Oct 10
politicrat
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12:37pm Thu 21 Oct 10
Mr Blackwell wrote:State vs People, I support the people and always will......
Yeah, we can really learn lessons from the French. . I thought you were all for the 'vulnerable' in society, Politicrat? You've clearly not seen the TV footage of thuggish mobs, oops, sorry, I meant 'protesters, beating up pensioners as their way of demonstrating against the rise in pension age? . Any reduction in the bloated and unsustainable welfare state is to be welcomed with open arms. Maybe, just maybe, when that proves successful we can start work on improving the NHS.
house on the hill
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1:11pm Thu 21 Oct 10
Even Angrier Monkey
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2:23pm Thu 21 Oct 10
Mr Blackwell
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2:41pm Thu 21 Oct 10
This is quite simply the political suicide of the Tory party that will have to implode or disappear
politicrat
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3:57pm Thu 21 Oct 10
Mr Blackwell wrote:your words:
No, politicrat, in his usual inimitable style, has it completely the wrong way round. Yesterday's spending review is about the State relinquishing some of its power and about giving the power back to the individual. . politicrat does NOT support 'the people' at all. He is a Marxist, whose only concern is for State control of our lives and everything we do. It's done under the pretence of being for 'the people' but it's anything but that. . He also says:This is quite simply the political suicide of the Tory party that will have to implode or disappearwhich, again, is nonsense. Every government takes decisions with the economy that boil down to being educated (hopefully) guesses. The current cuts may not, of course, see the economy boom - although nobody has claimed they might. What they will do is ensure we actually have an economy in the next five years. Under Labour and Brown the nation would have been bankrupt by 2015. . Even Angrier Monkey makes a very good point. Even after these cuts, State spending will be higher than it was in 2000 and there will still be 300,000 more State sector employees than there were 10 years ago. It's simply a slightly more sane realigning of Labour's 13 years of madness. . As people who have studied the Spending Review will be aware, the disabled, elderly and children (via education spending) will not see a decline in their standards. All these faux-tears about this nebulous 'most vulnerable in society' is simply over-emotive drivel from the Left, mainly because they actually know the cuts are necessary but feel they have to oppose the government at all costs - mainly because the unions tell them to.
Mr Blackwell
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4:02pm Thu 21 Oct 10
Old Town
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4:09pm Thu 21 Oct 10
politicrat
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4:11pm Thu 21 Oct 10
Even Angrier Monkey wrote:No Mr Angrier Monkey, the biggest expense of the nation are the pensions 18% (included in the welfare for obvious reason)
How are the government cuts the "short destruction of the social legacy of previous generations"?? Even after the cuts the welfare bill is one of the single largest areas of goverment spending. Politicrat you are acting like they have abolished it altogether. If you dont think that its possible to save a significant ammount of money from the welfare bill given that: - There are 100's of thousands on disability who do not deserve it - There are 10's of thousands of households nationwide where nobody works - that people are better off on benifits than low paid jobs causing immigrants to step in and do the jobs the indegious population should be doing but cant be arsed / would be worse off doing then you need your head looking at. And as for Rikki hunt: yes, lets build 150,000 council houses in Swindon and double the size of the town with the addition of the UK's largest slum. f*****g great idea.
Mr Blackwell
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4:45pm Thu 21 Oct 10
I have no problem tackling benefit fraud, but cutting benefits to cut benefit fraud doesn't seem right.
It is clear that this program of austerity is doomed to fail
and it might well be that the coaltion will collapse this Parliament I suspect will be a short one.
politicrat
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4:50pm Thu 21 Oct 10
Mr Blackwell
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5:09pm Thu 21 Oct 10
35 leading businessmen, including Marks & Spencer chairman Sir Stuart Rose, BT chief executive Ian Livingston and Asda chairman Andy Bond, said there is "no reason to believe" that the chancellor's plans to wipe the £109bn structural deficit within four years will undermine recovery.
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The letter also warned that Labour's plan to spread the deficit reduction programme over more than one parliament would be a "mistake" which would leave the UK almost £100bn worse off by 2014/15 and increase the risk of interest rate increases.
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The letter gives George Osborne much needed support just two days ahead of his crucial CSR, in which he is expected to outline plans to cut £83bn of public spending over four years.
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The 35 businessmen wrote in the letter that "the private sector should be more than capable of generating additional jobs to replace those lost in the public sector, and the redeployment of people to more productive activities will improve economic performance, so generating more employment opportunities.
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"It has been suggested that the deficit reduction programme set out by George Osborne in his emergency budget should be watered down and spread over more than one Parliament.
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"We believe that this would be a mistake.
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"Addressing the debt problem in a decisive way will improve business and consumer confidence. Reducing the deficit more slowly would mean additional borrowing every year, higher national debt, and therefore higher spending on interest payments."
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Other signatories to the letter include Next Chief Executive Simon Wolfson, GlaxoSmithKline Chairman Sir Christopher Gent and Microsoft Managing Director Gordon Frazer.
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The businessmen claimed delaying the deficit reduction would leave national debt £92bn higher by the end of parliament. It said: "In the end the result of delay would be deeper cuts, or further tax rises, in order to pay for the extra debt interest.
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"The cost of delay could be even greater than this. As recent events in some European countries have demonstrated, if the markets lose faith in the UK, interest rates will rise for all of us."
Even Angrier Monkey
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5:13pm Thu 21 Oct 10
Even Angrier Monkey
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5:17pm Thu 21 Oct 10
Donkey of Langton
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5:25pm Thu 21 Oct 10
Grimwald
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5:37pm Thu 21 Oct 10
Mr Blackwell
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5:55pm Thu 21 Oct 10
Donkey of Langton wrote:You do realise that the vast majority (c.80%) of the 'cuts' in public sector staff are due to come from natural wastage over the next FOUR years... don't you?
Not worth arguing, politicrat ... these people who decry everything you write, and much of it is perfectly correct, will learn as time goes by, that this over the top knee-jerk reaction by the ant-private ownership brigade, so say running the shop, will destroy the UK economy as never before. Time will tell, the Tories have always been the party of cuts and they will never change. Their poodles are just setting about losing the majority of the support they once had. It's like buying a season ticket for STFC in July, only to find they have sold half the team by August! Mind you that's been done!
john c
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7:40pm Thu 21 Oct 10
politicrat
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8:31am Fri 22 Oct 10
Mr Blackwell wrote:Business leaders are good at making money, it is not the Governement purpose to create UK plc......
It's all very clear to anyone with half a brain:35 leading businessmen, including Marks & Spencer chairman Sir Stuart Rose, BT chief executive Ian Livingston and Asda chairman Andy Bond, said there is "no reason to believe" that the chancellor's plans to wipe the £109bn structural deficit within four years will undermine recovery. . The letter also warned that Labour's plan to spread the deficit reduction programme over more than one parliament would be a "mistake" which would leave the UK almost £100bn worse off by 2014/15 and increase the risk of interest rate increases. . The letter gives George Osborne much needed support just two days ahead of his crucial CSR, in which he is expected to outline plans to cut £83bn of public spending over four years. . The 35 businessmen wrote in the letter that "the private sector should be more than capable of generating additional jobs to replace those lost in the public sector, and the redeployment of people to more productive activities will improve economic performance, so generating more employment opportunities. . "It has been suggested that the deficit reduction programme set out by George Osborne in his emergency budget should be watered down and spread over more than one Parliament. . "We believe that this would be a mistake. . "Addressing the debt problem in a decisive way will improve business and consumer confidence. Reducing the deficit more slowly would mean additional borrowing every year, higher national debt, and therefore higher spending on interest payments." . Other signatories to the letter include Next Chief Executive Simon Wolfson, GlaxoSmithKline Chairman Sir Christopher Gent and Microsoft Managing Director Gordon Frazer. . The businessmen claimed delaying the deficit reduction would leave national debt £92bn higher by the end of parliament. It said: "In the end the result of delay would be deeper cuts, or further tax rises, in order to pay for the extra debt interest. . "The cost of delay could be even greater than this. As recent events in some European countries have demonstrated, if the markets lose faith in the UK, interest rates will rise for all of us."Hmm, now, who to believe... 35 of the UK's top businessmen, or Politicrat and his Marxist GSCE economics group? Tough call.
politicrat
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8:42am Fri 22 Oct 10
Even Angrier Monkey wrote:Nobel Prize, common sense, then read this:
They realise that the UK economy is dangerously reliant on the public sector. In the medium term the public sector needs to be smaller (less govt spending) and the private sector needs to be bigger (more tax revenues) You dont need a Nobel prize, just basic common sense.
politicrat
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9:01am Fri 22 Oct 10
Mr Blackwell wrote:No Mr Blackwell I do not live in cuckoo Land, I am just educated.......
Yes, I believe it, because it's all true. . You do know that were it not for yesterday's spending review, the UK's debt interest repayments would have reached 100% of GDP by 2013? If that's not a definition of 'bankrupt' please explain what is. . We wouldn't have even been able to have afforded the interest repayments on our debts, let alone make any State spending or, gasp, actually pay back some of the loans. . Imagine having a credit card where your annual repayments were the same as your salary. Yep, doesn't really work, does it? . You live in cloud cuckoo land, politicrat, that is why such truths illude you.
Mr Blackwell
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9:17am Fri 22 Oct 10
Even Angrier Monkey
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9:45am Fri 22 Oct 10
SourBBB
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3:25am Sat 23 Oct 10
politicrat wrote:If you are educated then I firmly believe that Mohammed is a **** guzzling homo!
Mr Blackwell wrote:No Mr Blackwell I do not live in cuckoo Land, I am just educated.......
Yes, I believe it, because it's all true. . You do know that were it not for yesterday's spending review, the UK's debt interest repayments would have reached 100% of GDP by 2013? If that's not a definition of 'bankrupt' please explain what is. . We wouldn't have even been able to have afforded the interest repayments on our debts, let alone make any State spending or, gasp, actually pay back some of the loans. . Imagine having a credit card where your annual repayments were the same as your salary. Yep, doesn't really work, does it? . You live in cloud cuckoo land, politicrat, that is why such truths illude you.
Time Magazine 1999, most important and influential people of the 20th century: John Maynard Keynes
I quote "His radical idea that governments should spend money they don't have may have saved capitalism"
Keynes wasn't a Marxist (nor me) but a director of the BoE!
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Mr Blackwell says...
10:48am Thu 21 Oct 10
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The very last thing Swindon needs is yet more social housing. Quite the opposite, in fact.
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It's worrying that our so-called 'most influential' people don't seem to grasp what Osborne has set out. Those of us who do not receive vastly inflated salaries from the taxpayer specifically to do so can understand it, so why not the 'experts'?