Are UK public sector finances really that bad?
As the UK economy comes under yet more pressure from the OECD and various other economic forecasters, many are starting to wonder whether the UK public finances really are as bad as people say. This is not the first time that the UK government has come under pressure regarding excessive spending although it is the first time that the OECD has fairly and squarely laid the blame at the door of the government with regards to the expected lag in economic recovery.
It is well known that Alistair Darling and Gordon Brown do not see eye to eye with regards to the public sector finances with Alistair Darling attempting to get Gordon Brown to reduce investment while Gordon Brown remains adamant that his spend, spend, spend strategy will come good in the end. There was even a report from the Department of Health this week which suggested that up to 10% of staff in the NHS could be made redundant in order for the government to hit its savings target of £25 billion. Even though this particular survey was sanctioned by the Department of Health and written for the Department of Health, the minister in charge has already rejected the advice.
Public sector investment needs to be reduced significantly and a tightening of the belt must surely just be around the corner.
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