Spending Review 19% average cuts

As my readers will know I'm in favour of a slower payment of the debt. However even thought the spending review had plenty of bad news for many. I was pleased to see that there will be an increase of £2 billion in capital spending from Labours plans. As I blogged in Alan Johnson is right on capital spending.

 

I was also pleased that the average departmental cuts is 19% rather than the 25% expected. Less than the 20% cuts that Labour planned. This will of course be used as political capital. It's worth bearing in mind that this is not all at once but spread over the four and a half years.

 

The worse cuts for my political beliefs were the cuts in the Local budgets. I'm glad councils can borrow against future spending but this will only help to a certain extend. Good luck Bracknell Forest Council your going to need it.

Alan Johnsons right - capital spending required

I was watching Alan Johnsons(shadow Chancellor) interview on Andrew Marr this morning. Alan brought up the subject of capital spending. I agree that this is a good idea (as does Cable and Obama).

Capital spending means that we have a lasting asset like for example the Olympic venues, the high speed train link and say the proposed new aircraft carriers. But this of course includes building schools for the future (which is to be replaced which a smaller building program). Capital expensditure provides work and gives the country with a lasting usable asset. It's not employing administration staff for the sake of it. It provides economically viable jobs with something to show for it.

I hope capital expenditure is taken into account in the spending review and I also hope that it's not only Alan Johnson and Labour who put pressure on to ensure there is some capital expenditure.