Who will be next on the government's hit list?
Since the coalition government came to office a number of areas of the UK population and the UK business arena have been targeted for specific action to reduce government liabilities and increase income for the state. The latest bout of activity saw the public sector pension industry come under the spotlight with a change in the way in which index linked pension payments are calculated which could cost some public-sector workers up to 25% of their future pension income. So who is next on the hit list?
We have also seen the banking industry hit hard, the benefits system to be totally realigned as well as an increase in general taxes. There are very few areas of the UK population and the UK business arena which will not be hit by the recent announcements although we can expect more tax rises and more public-sector "savings" in the short to medium term. For those who believe that the ongoing budget reductions will hit the UK economy hard, they may need to think again because there is no doubt this is just the tip of the iceberg.
Many experts believe that if the UK state balance sheet was a private sector company balance sheet then the "company" would be insolvent.
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