September 15, 2009

Cable: "We need to debate when, how and where the cuts will come."



Liberal Democrat Shadow Chancellor Vince Cable has today launched proposals for tackling the fiscal crisis, which involves cutting public spending, and urged politcians to be "upfront" with people about where the cuts will fall.

In a pamphlet launched in collaboration with the independent think tank Reform, he argues that no areas of spending should be "ring fenced", and that every penny spent by the government should be justified.

The pamphlet identifies nine specific areas where potential savings could be made, which he argues should be part of a radical system of reform. His proposals include:
  • An end to bonuses for the civil service, which would save a £200m a year
  • A radical review of public sector pensions, which would lead to higher employee contributions
  • Scrapping many of the government's white elephant IT schemes, including ID cards, the NHS IT scheme, Contactpoint, and a proposed 'super database' which altogether equates to £11.45bn of savings over 10 years
Cable's proposed cuts would slash public spending by at least £14bn a year.

Commenting, Vince Cable said, “The time for generalities is over. Instead, we need serious proposals for cutting public spending and tackling the UK’s budget deficit.

“The priority is to move the economy out of recession but there is also a need to restore fiscal credibility and to allow Government to focus its resources where are they are most needed.

“We need to debate when, how and where the cuts will come.

“Undoubtedly more are required to meet the exacting fiscal disciplines but asking the British public for their vote at the next election means being upfront from the outset about what Government should and should not be spending its money on."

1 comment:

  1. There are a lot of people in the Vale of Clwyd who will remember the savage Tory cuts of yesteryear,if they think they're pulling the wool over anyone's eyes by suggesting they're a progressive party now I think they'll have a shock in the general election.

    They have a Shadow Chancellor who's never had an economics job outside of politics and no real life experience, whereas we have good Vince Cable, former Chief Economist for Shell and the only man with any financial clarity.

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