Tag: GB

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

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.

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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.

DfID-uk-aid_2526582bIraq 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 05th 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.

untitledThe 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.

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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.