Will George Know Enough About the UK’s Financial Condition?

Posted on: 21.06.2010    11:11:48

It is extraordinary and not the incoming administrations fault but it seems we only have partial answers to a lot of economic issues that are crucial to the future.

• Has the new government managed to flush out the true extend of the governments financial obligations both on and off balance sheet?
• As the number of people working for the state is “a bit rough and ready” there is margin for error here as well and you can not imagine a private enterprise not knowing to within a fairly narrow tolerance how many it employed.
• The economically inactive numbers continue to rise placing a huge burden upon the rest of us but the fall in those claiming benefits suggests the corruption that lies within. The luuvies will hate it but why should free handouts be available without accountability.
• Quangos, we hope we are wrong but little has been said about “fit for purpose tests” and these remain a drain adding little value. If they closed what difference would it make?
• Public sector pay, conditions and pensions are a joke. The coalition has done well to flush out reality but we suspect there is more bad news to emerge. The absence of radical action in the budget is a mistake.
• International debt/bank risk – is it under control? We doubt it. Are we in the eye of the hurricane with more pain to come as austerity budgets become fashionable as against printing?

There are many other unanswered questions for the youngest Chancellor in modern times and it’s a bit like asking Graeme McDowell to play Pebble Beach with a putter and a driver as all the irons and woods are bent out of shape and unusable.

Good luck George, you’ll need it.

 

Author: Chris Slay

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