Quote of the day 26th September 2014

"If we had a responsible opposition, then instead of a shadow chancellor who pays lip service to the idea of cutting the deficit and then proposes £20 billion of extra spending, and a leader of the opposition who forgets to mention the deficit at all, we would have an opposition leader and shadow chancellor who put forward ideas for cutting the deficit which could survive ten seconds of serious scrutiny.

"If we had a responsible opposition, then instead of constantly attacking businesses they would be encouraging the government to help employers provide more jobs and earn more money for Britain.

"If we had a responsible opposition, then instead of constantly promising to spend more they would be calling on the government to further reduce what is still an unsustainable level of public borrowing."

"If there had been any doubt, this week's Labour conference demonstrated that Britain does not have a responsible opposition."

(Chris Whiteside)

Comments

Jim said…
Said it before and will again, its a very important point.

One of the largest areas of waste across the UK in the public sector is the flawed way in which finances are managed.

Your yearly budget is £X - lets say £100,000
now if your little team don't spend your budget then you did not need it, so, in April will will take back anything you have not spent and cut your budget next year by that amount.

You see, if it was never needed and its getting close to year end then the obvious thing to do is spend it quick, on what ever, to ensure you have it should you need it next year.

there is no incentive to save money, only what appears as a punishment if you do, followed by a shortfall next year, when you may well need it.

another example would be to tax a public sector office, i mean its senseless. I know the paper format is ending soon, but this example may point out what i mean.

Should a Fire Engine have a tax disc? you see the fire service are funded by taxation, so the taxation that is used to build the fire budget, then a part of it, comes out of the black hole that is tax money, so it can be used to fight fires, goes on buying a tax disc where that money goes into the black hole that is tax money (minus a few admin costs and things from the DVLA and other administration bodies), also an empolyee of the fire service is checking tax discs and applying for them to ensure the fire engines are all taxed, when they could be doing something else, or the staffing levels could be reduced.
Jim said…
I see examples like this all the time, you know "paying for it out of our budget" and moving around that which is nothing more than wooden dollars.

Why go to the burden of making a public sector worker pay income tax?, think about it, they are paid out of tax, so why create the burden of taxing them, why not just pay them less in the first place "tax free".

It does not take a lot, just look at the areas where tax is being used to pay tax, or budget rules apply and you will very quickly start to think "who on Earth thought of that"

Jim said…
you said yourself to me "the Conservatives have done more than anyone to cut the deficit" after i gave a lovely illustration of pick up trucks with a million pounds in each of them.

but I don't think that's true. now I would have agreed if you had said "the conservatives have done more than any other POLITICAL PARTY to cut the deficit" i would have agreed 100%. But the fact remains the Conservatives have not done enough, and don't intend to do enough before the next election to do it.

"We will safeguard Britain’s credit rating with a credible plan to eliminate the bulk of the structural deficit over a Parliament"

do you recognise that statement?


Bulk of the deficit, well to me that means over 75% at least, though its fair to say you could get away with 51%, Still, erm... well.....
Jim said…
You also said that the interest payments alone are due to labours reckless spending, and that may well be true, cept its not really is it.

You see when Labour left office in 2010 the debt was £759.5 billion, or in my pick up trucks,parked nose to tail, with a million pounds on each of them it was 759,500 pick up trucks long (1726.14 miles long)

Now when the conservatives leave office it will be £1,200 billion or 1,200,000 pick up trucks long (2727.27 miles long)

which means of course that of those pick up trucks each one will a million pounds on the back of it then look at this)

the last 440,500 of them (1001 miles) are painted blue (with a yellow go faster stripe), under the current government alone.
Jim said…
And we soon see that the Blue (with a yellow go faster stripe), pick up tucks, parked nose to tail, are stretching from John o' groats to Lands End by the shortest road route, and the queue is well underway to making its way back again.

http://en.wikipedia.org/wiki/Land's_End_to_John_o'_Groats

Jim said…
Or put even more simply, the current government are responsible for 37% of the interest on the national debt.

Every other government ever are responsible for the other 63%

good, and clever what you can do with figures, when you quote the ones you want to, isn't it.
Jim said…
another idea would be the idea of complete ring fencing.

by this i mean - every pound raised in road tax and fuel duty goes on road improvment

every pound in income tax goes on the NHS, fire, and Education etc

every tax is ring fenced and every tax does that which it is there to do.

Chris Whiteside said…
I certainly would not pretend that the whole of the deficit is Labour's fault, though they certainly bear a very large share of the responsibility.

Of course, part of the impact of borrowing too much money is that it becomes a vicious circle as the interest payments on the money already borrowed make it harder and harder to stay in the black.

Someone wrote a great line the other day about the impact of the money Brown and Balls borrowed makes it harder for Cameron, Osborne (and any future government) to balance the books - they said

"Cameron and Osborne reached the cockpit just as the afterburners kicked in."

Interesting point about government departments paying tax although the particular examples have problems - in a few weeks nobody will need to display a tax disc, and exempting government employees from income tax could have some unexpected and odd consequences. But the basic question - can we save money by making it simpler - is a good one.
Jim said…
I know that no one will have to display a tax disc, but they will have to pay Vehicle Excise Duty (road tax). This makes it even easier to exempt certain vehicles. Starting with the most obvious examples of Fire Engines, Ambulances and Police cars.

"Computer says that cars not taxed, oh, wait, computer says it does not need to be."
Jim said…
The tax disc used to act as a kind of check, you see you obviously needed to have paid your road tax to get one, but you also needed to show that the car was insured and had passed its MOT test (or was exempt it). These days of course computer tends to do that, Police car scans registration plates as it drives along, computer checks, oh, computer tells police driver, the car in front is not insured. etc.

Because its just a check box exercise it does not take a lot to make a car "exempt" from the road tax bit. Also, if its ever sold, its very easy to un check that exempt box, at the time the DVLA are made aware of the transfer (which of course they have to be)
Chris Whiteside said…
That's a very good point about the tax disc. It would be interesting to check which solution saves more public money - you're right that taxing public vehicles just moves money round the government system to zero net gain.
Jim said…
yeah, it moves money around to zero net gain, but its also at cost. No one works for nothing, so every time money is "moved" a chunk of it is used in the moving. You have to pay the mover to move it.

Now will this cost jobs in the DVLA, well possibly, but unlikely. it just means the turn around of paperwork is faster which benefits everyone. freeing up resource to be used elsewhere.
Jim said…
Same with public sector wages, now I am not 100% convinced that the money ever does go to them and back again, but you still have to pay the book keepers to pretend it does.
so we have a net loss.

!!!NEW SCIENTIFIC LAW!!!

JIM'S LAW
"Every time money is moved, or is pretended to be moved, around the public sector, money is lost"

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