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The Government has lost control

The government still dithers over tax and spend | John Redwood MP

...If the government had control of its spending it would be easy to offer something off fuel duty, as they will be collecting so much more tax from VAT on fuel anyway. They could offer us the amount of the extra tax back to show their “sharing of our pain” had produced some response. They could also offer to cancel the worst of the VED increases, by using the substantial windfall revenue they will be getting from North Sea oil.

Unfortunately the government does not have control of its spending, and it is finding it expensive to remedy the obvious economic and political errors of the error strewn last budget of Mr Brown and first budget of Mr Darling.....

We need to cut the tax bill on people. To do so we need to curb spending. Curbing spending is now very easy, because administrative staff numbers are so high, quangoland is so bloated, and the core public sector is profligate. Instead we have a government which is still spending on itself like there’s no tomorrow, whilst losing its authority to raise the money to pay for it all.

Quangoland and the "core public sector" is Gordon's Turkey Army, the votes the Labour MPs are counting on, they can't cut them. And the nation can't afford them...

Comments

So how much scope is there for really substantive spending cuts? If they let me at the budget with an axe, I reckon I could find about £150-200 billion spare in an afternoon. A more detailed analysis would probably allow one to cut public spending by two thirds without little match girls dying of consumption in alleys. Then with an appropriate spot of gerrymandering, we could fix it so that Labour can never again power, and watch the China-style economic growth.

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