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.

 

 

UK PARLIAMENT VOTED TO CONTINUE WITH ONE PERCENT (1%) CAP ON PUBLIC SERVICES RATHER THAN SCRAP IT OUTRIGHT, BUT THEY CONTINUE TO LINE THEIR POCKETS

UK PRIME MINISTER makes a deal with DUP to secure her position by offering an increase of £1 billion increase in spending for Northern Ireland for the next two years.

However, she is reluctant to support our public service workers by lifting the pay cap of one percent that was introduced by Mr. George Osbourne in 2012 for a period of four years, this was extended in the Chancellor Budget until 2019.

On Wednesday evening 29^th June 2017, there was a vote called in the House of Commons to bring an end to the cuts to the emergency services and an end the cap of one percent (1%) on pay by make amendments to the Queen Speech. The Members of Parliament (MP’s) showed their true colours and feelings during this vote towards the people that continue to protect and save lives of the people of the United Kingdom. As they voted to continue to keep the cap of one percent, in favour of cap was voted by 323, while against was 309, the government had a majority of 14 votes.

Meanwhile Downing Street signals, The limit on public sector salary rises could be reviewed, after attempts to scrap the 1% cap was defeated in the Parliament vote.

Do NOT HOLD YOUR BREATH!!!!!!!!

Living standards for many of the public sector workers in the UK have suffered for years with the low or no pay increments. While inflation has continued to raise and is at two point nine percent (2.9%), as of 29^th June 2017.

What is saddening part here is that a majority of the public services wages at least one or two times less than the basic wage of a Member of Parliament, which is £74,000 a year. This basic wage for MP’s is just the scratch of the surface as they and entitled to other expenses, see below.

So, who is the most valued MP’s or Public Sector Personnel / Services. It is absurd that the FAT CATS that sit and argue like school children, rather than professional peers in the House of Commons They were elected to represent the people of the UK, but a majority seem to have no interest in what the people concerns and more interested in implementing further austerity measures that they continue to undertake and the lining of their own pockets, while the working class become poorer.

Unfortunately, class dived in the UK is extremely evident and there is only two classes of citizens, wealthy and working class, which are poor. Over the last month the Members of Government have shown through their lack of action, which they have continued to date, by not pro-actively supporting the working class (poor class) during the horrific incidents.

MP’s basic wages have increased by approximately 117% since 1996 and continues to raise further in the future. Although the previous UK Prime Minister David Cameron, on 24 May 2015 announced that he intended to freeze ministerial pay for the next five years. However, this was implemented as nine days later on the 2 June 2015 ministerial pay was to increase at the same time as MP’s basic pay was increased. Their basic wage can increase dramatically with the other expenses and perks that they are entitled to claim, see below.

Many MPs (ministers, the Speaker, senior opposition leaders, opposition chief whip, etc.) receive a supplementary salary for their specific responsibilities. As of 1 April 2015 these additional entitlements range from £15,025 for Select Committee Chairs, £74,990 for the Prime Minister.

• Prime Minister’s total salary would therefore increase from £142,500 to £149,440.
• Cabinet Ministers would increase from £134,565 to £141,505.
• Total salary for ministers would increase from £89,740 to £96,375.
• Total salary for parliamentary under-secretaries would increase from £89,435 to £96,375.

Unfortunately the full details of current ministerial pay at all levels have yet to be published on either the UK Parliament website or that of the Independent Parliamentary Standards Authority.

Here is a list of other expenses that Member of Parliament are entitled to0:

Office expenses

• Office running costs
• Staffing costs
• Travel: staff
• Centrally purchased stationery
• Postage costs
• Central IT costs
• Communications Allowance

Expense outside IPSA

MPs are entitled to claim £9,000 a year for postage and stationery (financial year 2015-16). This amount is in addition to any stationery and postage costs which Members may have reimbursed under the Independent Parliamentary Standards Authority’s expenses Scheme.

Housing, second home, and travel

MPs receive allowances towards having somewhere to live in London and in their constituency, and travelling between Parliament and their constituency.

Cost of staying away from main home

• Travel: car
• Travel: rail
• Travel: bike
• Travel: European

Pension arrangements

Ps will normally receive a pension of either 1/40th or 1/50th of their final pensionable salary for each year of pensionable service depending on the contribution rate they will have chosen. Members who made contributions of 13.75% of their salary gain an accrual rate of 1/40^th. State contributions for MPs are more than four times higher than the average paid out by companies for final-salary schemes, but they are not significantly more generous than most public-sector pensions.

If an MP stands down during the course of a Parliament for ill health reasons, an ill health retirement grant is payable, calculated in the same way as the Resettlement Grant (as well as an immediate pension based on the service the MP would have accrued if he or she had continued to serve until age 65)

Resettlement Grant and Winding-up Allowance

On leaving the House of Commons, an MP will be entitled to what is essentially severance pay.

Resettlement Grant

The Resettlement Grant is the name given to the MPs’ severance pay package. It may be claimed to help former MPs with the costs of adjusting to life outside parliament. It is payable to any Member who ceases to be an MP at a General Election. The amount is based on age and length of service, and varies between 50% and 100% of the annual salary payable to a Member of Parliament at the time of the Dissolution.

In the UK the first £30,000 of severance pay is tax free. As stated above, the amount retiring MPs, or those who lose their seats receive, depends on how old they are and how long they have served in the House. For example, an MP who stays in office for one term (say 5 years) and then leaves office will currently receive tax-free severance pay of 50% of his current salary, or £32,383 at current rates – equivalent to an annual salary increment of over £12,000 at current tax rates and pay scales.

For the 2010–15 Parliament, only MPs defeated in their attempt to be re-elected will get one month’s salary for each year served, up to a maximum of six months or over £33,000. From the start of the 2015 Parliament, it will be replaced by a “Loss of Office Payment”, at double the statutory redundancy payment. “For the ‘average’ MP, who leaves office with 11 years’ service, this may lead to a payment of around £14,850.

Winding-up Allowance

There is also up to £42,000 on offer to pay for winding up staff contracts and office rent. An allowance of up to one third of the annual Office Costs Allowance was paid for the reimbursement of the cost of any work on Parliamentary business undertaken on behalf of a deceased, defeated or retiring Member after the date of cessation of Membership. On 5 July 2001 the House agreed to change the allowance to one third of the sum of the staffing provision and Incidental Expenses Allowance in force at the time of cessation of Membership.

Summer Recess

Parliament takes a break of around 45 days for the summer. This is not only for holiday, but so that MPs can spend more time away from Parliament in their constituencies to do work there.

An MP’s term of office can be minimum of five years unless they become ill or do something dramatic that would affect their term. This position is a cash cow and they could earn £500,000 + in a term those take a place in the House of Commons. What becomes evident is that majority of the people who take up the position of Member of Parliament, actually join with the good intentions and have a desire to bring change and work on behalf of the people of the United Kingdom.

However, this soon changes as in every high-wage position, as a majority seem to change after a short period of time, once they realise that they cannot bring change to an institute that is focused on enhancing the wealth of their peers. This causes the new elected MP to become more interested in defending their position and protecting their enhancement of new wealth through their salary increment. Austerity effects the working class people of the UK and these continued measures of keeping budget cuts and caps on pay is in the interest of the UK Government Members of Parliament. Any increase in the taxes of corporations or high-net worth individuals will affect the Members of Parliament. This is why the current government is reluctant to raise taxes of corporates and high net-worth individuals

List of person voted to keep the pay cap, no surprises

http://www.independent.co.uk/news/uk/politics/public-sector-pay-cap-all-mps-vote-against-list-austerity-freeze-labour-jeremy-corbyn-conservatives-a7813706.html