This week the Con Dem Coalition announced the tax shambles, which will impact upon middle class families, and has implications for the debate on universal benefits, balanced by fair and full taxation on all income. The FT saw this "spreading the pain" argument of millionaire Chancellor Osborne, as a cover for the worst to come in the October Spending Review, which will target, our people, our services and our communities. The FT again questioned the mandate for the threatened austerity measures.
That mandate is under additional scrutiny in the Devolved Administrations of Northern Ireland, Wales and Scotland, prior to the devolved elections next May. Public services have a particular and vital function in sustaining local communities, not just in payroll, but in local procurement from the private sector. Independent estimates show that every public sector £1 generates upwards of 65 pence in local economic activity.
http://www.economist.com/blogs/bagehot/2010/07/austerity_britain_1
That's why the First Ministers, Deputy First Ministers and Finance Ministers of Scotland, Wales and Northern Ireland have issued a joint declaration to the UK Chancellor, George Osborne, ahead of the UK Comprehensive Spending Review.
http://www.scotland.gov.uk/News/Releases/2010/10/07120633
The declaration outlines their shared concern that the UK Government's plans will cut public spending too fast and too deeply. The devolved administrations have urged the Chancellor to scale back the proposed cuts, and phase them in over a longer period to ensure they do not put the economic recovery at risk or threaten vital public services.
http://www.ft.com/cms/s/0/4449af74-d236-11df-8fbe-00144feabdc0,dwp_uuid=ec12e25a-624a-11de-b1c9-00144feabdc0.html
Mike Kirby
