Dismantling the Budget 7: Government Savings, Benefits and Personal Savings
by Part seven of deconstructing the budget, looking at Alastair Darling’s plan for the British economy. In this section I will be looking at government savings, benefits and personal savings.
• Tax loopholes and schemes identified which could provide £1bn of extra revenue over the next three years if closed.
This is a move in the right direction, streamlining and increasing efficiency, without spending money. Let’s see more of this.
• An extra £9bn in efficiency savings is planned
I would like some more details on this. Is the government going to start using open source software? Are they cutting unnecessary jobs within the civil service? I’d like to see where this money is coming from, because of the government administration is currently so inefficient that £9bn can be saved, then the state of it is simply inexcusable! £9bn is not inefficient, it’s criminal wastage.
• Public spending to be cut from 1.1% next year to 0.7% in 2011-2012
A mixed bag really. Some areas of public spending simply cannot be compromised, whereas others could stand to loose a few pounds. Insufficient data for meaningful answer.
Benefits
• Child tax credit to rise by £20 by 2010
Great, more money being spent. I support parents, I really do, but I think that a global cut in tax would leave them with some more cash, and encourage the rest of us to splurge a little. The spenders should be putting money into the economy, not the government. The Banker’s bailout anyone?
• Child trust funds for disabled children to rise by £100 a year, £200 a year for severely disabled children
That’s fair enough I suppose. I don’t really have an opinion here, all my allowances for disability where paid for by my university.
Savings
• Annual limit for tax-free ISAs to rise to more than £10,000 for over-50s this year and for everyone else next year
Not a bad idea! ISA’s allow the banks to make some money, and then give population some money to throw into the economy on big purchases. However, there’s one fatal flaw in this idea, and it’s the same one that’s present with the car scrapping scheme- do people have enough money to actually make this investment? Many can stand to loose a few quid if they’re going to gain more back, but will that be a meaningful amount?
And let’s not forget that public confidence with the banks isn’t exactly glowing right now.
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