Monday, July 06, 2009

The establishment is trying to warn us about our current plight

Sometimes its too easy to rant about civil servants and the establishment, especially when they are quiet despite challenges which are a very clear and present threat to our country.

But I have noted a number of attempts by those who serve us, or did so, and are often beholden to the current government to warn us, or prepare on the quiet for the disaster when Gordon Brown debt time bomb goes off. Here are a few I've spotted floating by recently:

  1. NHS Trusts currently planning for a 5% cut.
  2. Civil servants secretly preparing plans for a 20% cut in departmental budgets.
  3. Meryn King's warning about "Fiscal Stimulus" and more recently about plans to reduce the debt.
  4. The failure of that gilts auction, that now has the bank of England printing money to fund the government.
  5. John Major warning about VAT at 20% and a 5p raise in basic income tax ( whilst dismissing the Labour myth that just the rich can be taxed to cover things ).
There is a common message emerging to both parties that more radical action that is being currently openly discussed will be necessary.

This puts the dishonesty of Gordon Brown in talking about raising public spending into its correct perspective.

PS I wonder if the 20% doom's day plan isn't needed to be able to act intelligently to a rapid funding crisis, which must now be a real fear. You can see the scene - the government is unable to sell any more debt and is on the verge or actually becomes insolvent. The IMF steam in ( if we're lucky and they have enough money left ) and demand large cuts tomorrow. At least a plan would exist so the brutal surgery didn't cut too many arteries of the country. However perhaps the reported planning may be more extreme than necessary to force some sort of prioritisation out of each department and to avoid the fake efficiency savings and accountancy tricks being put forward to the Treasury.

Update Wat Tyler has some insight into civil service activities - and its worth talking a look at his analysis on the 20% cuts here.


James Higham said...

Yes, the Major comment was interesting.

Man in a Shed said...

@JH - I couldn't make up my mind who John Major was acting on behalf of.

Occasionally in the past John Major has popped up to give Brown a quick kicking, and you assume CCHQ might have been involved in the plotting.

But this time he seems to be targeting the debate in general. Trying to get the public to face up to facts. (That might be in CCHQ'sd interests also, but it doesn't sound instinctively Cameroon to me ).

This makes me wonder if there isn't a more concerted move by the "establishment" to try band inject some reality into the current debate on public spending.