UK is overspending funds that they have not got, the main reason for continue cuts / measures that have led to austerity

Having reviewed the UK Spending over the last few weeks it is alarming to find that the UK Government is running into deficit every year, year on year. Although the figures shown are estimated and the true figures could actually paint a different picture, which could be more alarming.

It is estimated that government will spend £12,138 a year, per person (capita) to run and operate the services across the United Kingdom, this estimated total spends for 2017 is £784.1 Billion. However, the estimated total revenue that the UK will generate is £730.2 billion, this gives the UK a deficit of £54.1 Billion on the total spending for 2017.

Well how many businesses do you know that actually operates year on year in the red and continues to increase the deficit on a yearly basis. The financial and economic system that was introduced over the last three decades ago has not improved the majority of the UK Population and only worsen their lives. They are working longer hours for wages that are below the rate of inflation. While food products in the supermarkets are being down sized for the same value, the money that many people have is far less value than it was a decade ago.

UK Government continues to allocate finances to different sectors, when it has not got the funds or they could be allocated elsewhere for a period to strengthen the UK Public Service and sectors. Examples of spending:

For decades, the UN has encouraged donor countries to contribute 0.7 per cent of their gross national income to foreign aid. In 2015 it was made a legal requirement by the UK government they actually give an estimated provisional figure of £13.3bn in 2016.

Iraq are set to receive a loan of £10 Billion from the UK government. As they agreed to finance the loans to support infrastructure projects in Iraq over a period of ten years. The program will exclusively target and benefit British businesses looking to invest in Iraq.

On the 05^th December 2016 the UK Government issued a report setting out over £500 billion worth of infrastructure investment published for the future.

• Government releases details of its £500 billion-plus infrastructure investment projects
• Projects includes major projects such as the Thames Tideway Tunnel, the rollout of smart meters, and upgrading the A14
• Providing a single source of data for both government and the private sector, giving greater certainty for investors and suppliers

The government published a new National Infrastructure and Construction Pipeline, setting out over £500 billion worth of planned private and public investment over this Parliament and beyond with more than 40% of the pipeline being delivered thanks to government investment. Chancellor’s Autumn Statement announcement of the new £23 billion National Productivity Investment Fund.

This new fund includes infrastructure investments of over £2.6 billion to improve transport networks; a multi-million pound package to accelerate the future of broadband, and £7.2 billion to support the construction of new homes. The government feel investing in better infrastructure is at the heart of the government’s ambitious plans to close the UK’s productivity gap.

The new National Infrastructure and Construction Pipeline contains:

• Over £500 billion of planned investment, with over £300 billion of this to be invested by 2020/21
• Over 720 projects and programmes across transport, housing and digital to fire up the nation’s infrastructure
• Around 20 new schemes have been added to the pipeline since March 2016, including the Oxford to Cambridge Expressway

What is becoming evident by the UK government continuation to invest in infrastructure and new construction projects is that they are investing totally in the wrong areas. The UK Infrastructure and transport links are some of the best in the world and could be delayed and funds used elsewhere. Unfortunately, the housing, health services, education, public services, horticultural, manufacturing, IT Development and border control is where the investment is required, not the transportation and new construction projects.

UK government commit to building and giving monies away, rather than investing in the people that service the population. Majority of food products are imported, while the UK has prime agricultural land and only use a minority of it to produce food sources to sell to the UK Population.

The UK government needs to sit-up, as it cannot continue to keep going on a spending spree with monies it has not got, the people are suffering today through the cuts and drastic measures taken by the government to balance the revenue and spending sheet. These measures have led to austerity, the trickle-down system is not working for the population and only for the minority. There needs to be change now as the grandchildren of our kids will be in a worse position than we are today with the burden of escalating debit.

The position the government is in today, is not hard to rectify, there must be changes in the policies of the government. Trickle-down will not work in the manner it is being used and only makes the wealth even wealthier. Unfortunately, a fundamental part is missing from the system and was deliberately left out. This system was designed by the minority (wealthy) to benefit the minority, they did not implement the complete system, which would have meant everyone would have benefited, the minority should be taxed at a much higher rate and given potential tax incentives for investments into public projects, businesses etc.

To bring a change one of two things need to happen, either the government makes drastic changes, which include their salaries, perks and policies or an overall of the political system, including its politicians. One must understand that the people holding the power are responsible for the state the UK is in today.

Some interesting figures (although some Guesstimated) by Christopher Chantrill

http://ukpublicspending.blogspot.co.uk/2009/04/how-we-got-spending-data.html

Estimated Spending in 2017 – £784.1 Billion

Estimated Total Revenue 2017 – £730.2 Billion

Estimated UK Population 2017 – 62,500,000

2017 Estimated spending – £12,138 per person

Public Pensions   £2,416 / person

National Health Care   + £2,231 / person

State Education   + £1,314 / person

Defence   + £716 / person

Social Security   + £1,700 / person

State Protection   + £464 / person

Transport   + £448 / person

General Government   + £221 / person

Other Public Services   + £1,824 / person

Public Sector Interest   + £788 / person

2017 Estimated Total spending £784.1 billion  

Pensions £156.9 billion

Health Care £142.7 billion

Education £85.2 billion

Defence £45.6 billion

Remember, 2017 has nearly half a year to continue, the estimated value of spending could pass the £800 billion figure as there are dramatic steps have to be taken following serious events. This could easily raise before 2018.

HS2 Routing to disrupt people’s lives, remove housing adding to the continue lack of housing and cost an estimated £56bn. No project ever comes in on budget lets watch this price enhance to £100bn + by the end.

UK Government again just going ahead with ludicrous plans, which is going to cost and cause further turmoil to our struggling economy.

Chris Grayling (UK Transport Secretary) said:

“Britain’s new railway line will bring huge economic benefits across the country and help ensure this government delivers on its promise to spread wealth beyond London and the south-east,”

This comment just shows this cabinet minister is either delusional or taking some form of medication that is making him hallucinate. The government promised to spread the wealth in the 1980’s with the introduction of the “trickle-down economics” system. Today the only individuals to have benefited from the government incentives are corporate organisations, wealthy individuals and minority of politicians.

Majority of the people of the UK have not had a pay increase over the last decade and are living on similar wages that they were on a decade ago. However, this time the true value of the pound is not the same, as it is weaker and the cost of living has increased dramatically.

While the politicians have had large increments in their wages since 1996, last-one in 2015 which was at least 11% raise in pay, as highlighted in previous blog.

The people who provide services of security, save life, educate our children, ensure the country is run correctly and fight illegal wars on behalf of the politicians get pay caps / freezes below the rate of inflation and cuts to services, which effect their lives, enhancing their workload and hours. Although the government continue to give false promises of raising or removing the pay restrictions in times of need as they did recently for the emergency services, but was found to be just false hopes or blowing wind up the people’s backside.

It is a known fact that construction projects on this scale never finish within the estimated budget and always far more, the projected estimate could be easily above £100bn.

Further statement made from the Cabinet Minister:

“We will now press ahead with building the line, while continuing to ensure affected communities get appropriate support and are treated with fairness, compassion and respect.”

It is great to now they will continue to ensure the affected communities get appropriate support and treated with fairness, compassion and respect. While to date, they have not been treated as the statement implies, this has come to some as a shock. UK has a housing shortage, it is in turmoil with regards housing people and this railway route will pass through areas with proposed and new housing developments. However the railway route has taken president over the housing and the developments will be stopped and new housing or housing obstructing the route demolished.

This is not benefiting anyone other than the minority class and minority of politicians on the receiving end of back-handers. The vote held in 2016, when the construction estimate was £30bn was a majority thought it was not absurd

Same wording in the statement above “while continuing to ensure affected communities get appropriate support and are treated with fairness, compassion and respect” was said with regards housing the people displaced by the horrific fire and aftermath of the tower inspections. Unfortunately, these people are still fighting to be housed and feel they have been forgotten, this government are using words but finding it hard to take physical action, as they do not care about the people that are effected by their plans.

Residents of the Shimmer housing estate in Mexborough have disputed that only 16 houses will be demolished by the new line. Karen Schofield, whose family farm is also on the proposed route, told the BBC that the government’s decision was

“Unthinkable”. “It’s the worst possible news that anybody wants to hear, that you’re going to lose your family home, which my husband and his brothers… they bought, what, 40-odd years ago,”

“There’s horses, there’s stables, we’ve provided employment for local communities… and it’s ok HS2 saying they’re going to compensate like-for-like… we’ve invited them to come down here and have a look what we’ve built up over the years.”

Although the government has setup a compensation scheme that will offer homeowners the “un-blighted” value of their home plus 10%. This will not be enough for persons to buy in the same areas. There should be no statutory compulsory purchase schemes, the residents of their homes, which are their castles should have not have been put in this predicament and the government should be re-routing or upgrading existing lines if they feel they need too.

Minority of the Members of Parliament have spoken out, Labour representative for Doncaster North Ed Miliband has spoken out and said putting the line through his constituency was “wrong and perverse”.

“It flies in the face of evidence, logic, and above all, the economic needs of South Yorkshire, the government and HS2 should be ashamed about the way they have gone about this decision. Their arguments do not add up, the consultation was a sham, and the residents have been ignored,”

While Philippa Oldham, Head of Transport and Manufacturing for the Institution of Mechanical Engineers, states openly that the overall HS2 plan would be of benefit to the country. By freeing up the capacity on the East Coast Mainline, West Coast Mainline, through the HS2 route we’ll be able to shift some of our freight network onto the rail network from the road network.

Does she not think the rail network that we have in place today could be modernised to take freight from our road network, we do not utilise the railway and transport links we have in place today. Being realistic the majority of the freight received today is transported on the roads, however the number of good vehicle licences continue to fall. With HGV traffic is now below its 2007 pre-recession level. It is a known fact that the Logistic sector is suffering from skills shortages, which effects the efficiency of the business and operations. Another concern with shifting freight from roads to rail is cost, considering the price of using the rail infrastructure today and potential increase.

In addition if this is to benefit the people of the UK, what about West of England, Scotland and Wales, should the lines not be directed towards these parts of the country as they will probably lose out economically?

One of the strongest arguments against HS2 is the opportunity cost. Spend £56bn on HS2 and that’s £56bn gone from other projects. The UK is heavily in debt, public finances are stretched so spending is carefully prioritised and cuts to emergency and public services. But the government has failed to

Although the government will insist that the “High speed rail is the right answer for Britain.” it may be in the future when the country has not got major deficits in its revenue. In 2017, we cannot afford to keep our basic services in operational condition and continue to rob one sector to pay another sector, this is a money pit that will swallow up finances best used elsewhere.

Theresa May, must have magic money tree or gene in a lamp, the UK need to stop this pantomime and come to reality. Money is not available for these fantasies project, especially when we have future costs that will affect our budget. Nobody knows the true pricing of leaving the EU or replacing all the cladding on the Tower Blocks across the UK to date, let alone any other surprises we have around the corner

This HS2 project should be put to the public vote, as it affects our future in the UK and not everyone is backing it, the government have a agenda and has tried to sneaky this project under the radar, as MP’s were not informed of the go-ahead formally and there was no discussion.

The best part here is Chris Grayling is another Member of Parliament that has taken advantage of his position in the past and claimed tax payer’s monies (see link below) for his gains. How can we trust these people to work in the interest of the voters, when they are only interested in enhancing their wealth?

http://www.telegraph.co.uk/news/newstopics/mps-expenses/5305242/Chris-Grayling-claimed-for-London-flat-despite-nearby-constituency-home-MPs-expenses.html

UK Politics seems to be on its head. Does the Right-hand now what the Left-hand is doing. More games going on in the government than in a casino

https://www.theguardian.com/politics/series/politics-live-with-andrew-sparrow  

Absolutely brilliant porthole for most up to date information on the happenings in UK Politics – must say thank you to Andrew Sparrow.

Just had to have my say on a few items, sorry:

David Cameron’s – warning in his first post-election interview to the Tories, that they need to inspire more & modernise. Just shows how out of touch these politicians (ex-politicians) are with the people of the United Kingdom. How can he give advice, when he did not inspire or modernise anything when he was in power? When the going got tough, what did he do to inspire the UK Nation, turned on his heels sharpish and run the other way. Is he the type of individual that should be given advice on any matters concerning politics today as he let us down in times of need. In an event of war, he would have been shot by his men for running the other way.

Theresa May – telling her cabinet ministers not to speak to the papers or leak information regards her meetings. Well just shows she is not in-tune with her own cabinet ministers, if she is chairing a meeting and discussing policies etc. Then for cabinet ministers to openly talk about the contents of the meeting only tells us one thing, they are not happy with the way the meetings are run and feel that their voices are not being heard, hence the talking out to media.

TM needs to get a grip of her house and start listening to the cabinet ministers or acting by slapping them down, this sounds more like the meetings are held by dictatorship or people in the cabinet have other agendas. Remember majority of these so-called politicians do not care about their electors and only have one thing on their minds “how much money can I make, while in office” they are driven by greed and have no desire to improve the living of the UK Population by running the country correctly.

Brexit – negotiations should be undertaken by members from every political party this exit / divorce is the UK & Europe. Let’s get selected people from all parties around the table and discuss the terms and agree as one house how we intend to go forward. It seems the right-hand does not know what the left-hand is doing. To date it seems to be a shamble and just hit and hope approach. It will be no surprise if we are bent over the table and shafted by every European member and left with nothing beneficial for the UK. Jeremy Corbyn, Nigel Forage and more

Guy Verhofstadt extract below from the Independent is spot-on the money, this is from the other side, it makes you think if some of the EU Ministers should come over and run our country and we sack the crap we have in office.

“Brexit is about the whole of the UK. It will affect all UK citizens, and EU citizens in the UK. This is much bigger than one political party’s internal divisions or short term electoral positioning. It’s about people’s lives,”.

“I believe the negotiations should involve more people with more diverse opinions. Some recognition that the election result was, in part, a rejection of Theresa May’s vision for a hard Brexit would be welcome.”

Chris Grayling (Transport Secretary), about as much use as a chocolate fire guard promoting HS2 project go-ahead, he should be recommending for it to be put on hold. This is ridiculous considering the overspend this government continues to do year on year. There are more pressing issues that the finances could be directed to other than this HS2 Project. The financial year is only half-way through and the amount of borrowing that this Government must do for 2017 is far beyond, what anyone could imagine following the incidents in the start of the year.

It makes you think, how many backhanders or brown envelopes are being put under the political tables to get this passed. A project that will affect the purse should be put up to the public for a vote. Which could be done with the technology advances today.

UK Government has one chance to get things right and start to bring the country together, however, be prepared for the future, if they continue as they are at the moment the UK will be forced backwards. Poverty is really happening with majority of the UK Population feeling the pressures from the cuts and measures taken by the government to save money and bring down the deficit. Well that what they have you all believe; UK People are living below the rate of inflation. There monies have the same value as they had ten years ago. Supermarkets are either increasing prices on food or changing the packaging sizes and putting less. Food-banks are the normality for some, while others are less than one pay-check from being Homeless.

You may laugh at this, but it is fact, I sit in the parks on benches and watch the world pass by, sometimes lost by the propaganda, fighting between politicians etc. But I am fortunate to be given a gift of life and an insight through my experience to look outside the box. Watching the progressive destruction of individuals and countries by decisions of others. People all over the world are suffering poverty, while others are swimming in wealth bestowed upon them by others. Majority of politicians of the world today have one thing in common, to fulfil their own desire to be wealthy before representing the people that voted for them.

Today’s technology advances, our societies can be self-governed by the people, voting on policies and decisions through the multi-media platforms we have available. There is no need for 650 members of parliament, we should just have an elected party, the MP’s are elected for the positions and then democracy is managed by the population.

 

 

Austerity / capitalism causation of trickle-down economics introduced by world leaders over three decades ago and still being enforced today.

Today in 2017, the UK and the USA have similar economy, which splits the population by favoring the high net-worth individuals. While it deprives everyone else not lucky enough to sit in the high net-worth part of the population and makes them poorer.

The economy scale has tipped in the favor of austerity and capitalism.

Unfortunately, in the UK this system that lead to the austerity and divide between the population is due to the Members of Parliament continually supporting the system that benefits the high net-worth part of the population and deprives the rest.

This system was introduced in the 1980’s by the relevant leaders, Margaret Thatcher (UK) & Ronald Regan (USA), the system was known as the “Trickle-down Economics System”.

The main foundation of the system was to Trickle-down, which can be (very loosely) characterised as the idea that reducing the tax burden on the high net-worth and wealthy individuals, in the end, is good for everyone.

They felt that the wealthy person’s taxes being reduced will increase their disposable income. This will then enable the wealthy person to spend the extra income on a new mansion, or luxury goods, or lavish holidays. Which in-turn will benefit the estate agent, the luxury manufacturer, tourist resorts and service providers profits increase, this increasing their disposable income and continue the trickle down processes. The profits will also enable the people to invest the profits, expanding their capacity, creating new jobs in the process. That additional investment boosts income and employment. This then will grow the economy, bringing in more tax revenues (more, indeed, than were forgone through the initial tax cut). The size of the state is reduced, the freedom of the population grows and general prosperity is enlarged.

Although this system / model sounds good, it is fact that it does not work and the only individuals who benefit is the wealthy. As they make the profit and continue to purchase expanding their wealth, the wealthy individuals are owners of the product ranges, estate agents and brands etc. that they initially make their purchases. So the money they spend just keeps going around in circles increasing the wealth dived.

Two well-known former government purse holders from the US & UK have commented on the system and agreed that is failed the majority of the country’s population.  Larry Summers (US Treasury Secretary) and Ed Balls (UK Shadow Chancellor) have stated openly and in reports

“That tax cuts for the rich do not inexorably result in more economic activity, but create a growing income gap between those at the top and those at the bottom. The rich tend to save more of their disposable income and growth slows down.”

An academic and popular economic writer from Cambridge University – Ha-Joon Chang,  states “The trickle-down argument crucially depends on the assumption that, when given a bigger slice of national output, the rich will use it to increase investments”, he has written. He describes this as “an assumption that has not been borne out by reality”, and goes on: “Once you realise that trickle-down economics does not work, you will see the excessive tax cuts for the rich as what they are: a simple upward redistribution of income, rather than a way to make all of us richer.”

Individuals who have worked in high-level positions within the government or who have become experts on the subject. Believe that higher wages for ordinary workers, higher rates of tax on the super-rich and corporations, as well as a co-ordinate international closure of tax loopholes, with the money used to finance more public infrastructure investment.

This trickle down system was introduced over three decades ago, it was not subscribed to by the population and no open discussion or review of the system has been undertaken to establish the areas of failings. Main reason for this is the individuals who introduced the system (Members of Parliament) are actually benefiting from the system, they do not want change as it will affect their wealth.

There is no record of any serious free-market thinker ever outlining that cutting tax rates on high earners is good because it encourages the rich to spend,” argues Ryan Bourne of the Institute of Economic Affairs think tank. “Free-marketers don’t believe in low taxes because of their effect on spending. They believe in low taxes because they provide a strong incentive to earn more income in the first place.”

Only in the last week Philip Hammond (UK MP & Chancellor of Exchequer) spoke out in cabinet meeting that he felt that Public workers are overpaid. This just strengthens the notion that the only system that is of any interest is the one that protects and enhances his wealth. When considering he and a majority of the MP’s representing the UK Population benefits greatly from the “Trickle-down System”. Philip Hammond, who has an estimated wealth of £8.2 million in 2014. He has previously been caught-out for avoiding tax’s http://www.mirror.co.uk/news/uk-news/millionaire-tory-philip-hammonds-200-3231876 .

In early 2017, Philip Hammond was challenged by an opposition leader to publicly publish his tax return, but he refused. http://www.huffingtonpost.co.uk/entry/jeremy-corbyn-publishes-tax-return-chancellor-philip-hammond_uk_58bc41b7e4b0b998941837c6

He told the BBC’s Andrew Marr Show he has “no intention” of making public his documents since “my tax affairs are all perfectly regular and up to date”. This just shows that the person to set the UK Budget and control the purse, cannot be open and transparent with his earnings or income. Which are most probably ten to twenty times more than any public worker and only shows his real intentions to enhance his wealth and support the minority of the population. MP’s serve the UK Population and should be accountable to the people, then why are they not showing their annual earnings by issuing the tax return publicly.

Income inequality has reached excessive levels and is now effecting the majority of the UK Population and growth in the public services and economy. Rather than stimulating spending by the wealthy it is doing the opposite, which in-turn is forcing much of the population to enhance their levels of debit.

Remember, majority of the Members of Parliament, who represent the UK People are receiving financial rewards of more than £100k year with salaries and expenses etc. Probably a majority have been fortunate to have generated a wealth through their careers in the government sector and do not feel the effects of austerity or capitalism.

Demonstrators take part in the ‘Britain Needs a Pay Rise’ march in central London, organised by the TUC as public sector workers are calling for an end to austerity and to highlight the need for pay to increase following days of industrial action by nurses, midwives and civil servants.

Legal tax avoidance and illegal tax evasion is costing the UK billions a year and effecting the public services and population. Estimated cost in 2014 estimated at