Myth Busting: Debt, Deficit, Pay & Pensions

Thursday, 11 November 2011

And Now Everyone Agrees With Liam!

“There’s No Money Left”

The National Debt

This is the scary position used to justify the cuts

The Real Picture

In 2007 the UK had 2nd lowest debt in the G7. Then we bailed out the banks …

Billions To Support The Banks

£850 Billion to bail out the banks

£76 bn just for RBS & LloydsTSB

£81 bn cuts to Public Services

John Redwood MP

The most powerful parliamentary voice of today’s “Right” who isn’t serving on the front bench

We Agree With John

It would be a good idea to get the tax payer out of the banking business and get our money back from the taxpayer support operations.

John Redwood’s Blog - 15 October 2010

Bank Levy “To Repair The Damage”

£2.5 Billion a year from 2012

340 years* (excluding interest)£850Bn bailout / £81Bn cuts

The Brink Of Bankruptcy?

Treasury Select Committee chairman, Tory MP Andrew Tyrie

“Osborne's claim that Britain had been "on the brink of bankruptcy" was "a bit over the top“ and "over-egging

it a bit".

The Brink Of Bankruptcy?

Treasury Select Committee - Lord Turnball, former Cabinet Secretary:

Question: “Do you think it is accurate to describe the UK as being on the brink of bankruptcy?”

Lord Turnbull: “No, I don’t.”

The Worst In The G20?

Like Greece or Spain or Ireland? No, because of sterling's ability to devalue outside the euro.

The largest budget deficit in G20? Britain's overall debt puts it 12th in the IMF table, much better than Japan, the US and France, only 2% worse than Germany.

The Annual Deficit

Bank Of England Criticises HMRC (Sep 2010)

£42bn Uncollected Tax could bring GDP down to 45%!

(Each Tax Officer Yields £640,000 net – 7,000 jobs cut)

Reducing Tax Avoidance could add £13bn£12bn is the equivalent of 480 new schools, 300 hospitals

£155bn(Reduced from £163bn)

PayPrime Minister’s Pay £142,500

NHS Chief Exec £260,000Chief of Defence £250,000

Head of Civil Service £240,000

South East Chief ExecutivesKent County Council £245,000

West Sussex £218,000Surrey County £205,000Bucks County £200,000

67% Local Gov Staff less than £21,000

67% of Local Gov Staff paid less than £21,000

Some are already in 2nd year of a pay freeze

A two year pay freeze will be introduced from 2011-12 for public sector workforces, except for those earning £21,000 or less, who will receive an increase of at least £250 a year

Average Local Gov pension £4,000Average LG Women’s Pension £2,600

• Increased Retirement Age • Future Cost Sharing• Employer Contributions Capped• Employee Contributions Up

Hands Off Our Pensions?

2008 Changes to LGPS

England (2008) Income £10.6bnExpenditure

£6.2bn

Hutton Interim report

“they are not gold plated & are sustainable”

Short term reform

• increase employee contributions to ease costs

Longer term reform needed will be set out in final report in March

• Defined Benefit favoured & strongly supports move to career average

• Cost share has not gone far enough

What Others Are Doing

French Strikers Unorthodox Protesters

What Others Are Doing

French Strikers Unorthodox Protesters

In Conclusion

Francis Maude, Cabinet Minister, MP for Horsham

Multi-Millionaire, on Newsnight (22/10/10) he argued that a 5% cut to his salary was equal to the 'pain' suffered by

Britain's poor

Says his political life has been about smaller government

In Conclusion•Labour Election Let Govt

Set The Debate

•Debt Affordable

•Deficit Manageable

•Pay Is Exaggerated

•Pensions Are Sustainable

Cuts Are Ideological Not Financial