The UK government is in austerity mode, and the trickle-down effect is to spread poverty wider than ever before. Particularly at risk are single parent mothers with young children, who have difficulty balancing the demands of raising young children with those of the welfare administration. See “Down the Rabbit Hole”
There are other ways of dealing with the current financial situation, and no shortage of people to recommend them, but the government is sticking resolutely to its path.
Is there something we are not being told?
One might have thought that with an income from taxation of £23.9bn in 2013 there should be enough money to go round and keep everybody happy. See
UK tax inspectors collect record £23.9bn
What they didn’t tell you was that the UK is already in debt to the tune of £1.27 trillion, and the interest payments on this debt will be about £1bn a week – more than twice the income from taxation in a record year!
Interest bill on UK’s £1.27 trillion debt to hit £1bn a week
You may well ask at this point “Well why isn’t the UK bankrupt?”, and with good reason.
There are answers to the question, of course:-
Smoke and mirrors
Sleight of hand
Shady Dealing (Privatisation)
Even if the invisible earnings bring in about the same as the visible (taxation), it is quite apparent that there is no great surplus to be had, which means that if you were expecting a bonus, you will have a very long wait. Don’t hold your breath!
Of course, there is always the redeeming factor of inflation – that horrible device that steals money out of pensioner’s pockets, but makes large debts eventually easier to pay off. Unfortunately, that is being held low at the moment, and does not make any significant contribution in the short term.
In view of the foregoing, one could ask why anyone is seriously contemplating a flagship project such as HS2 at all – we simply can’t afford it. Ah, but if big business comes up with the money, it could work. Never mind that it is not really of much benefit, will be totally behind schedule, and way over budget – flagship projects are simply necessary. Don’t knock it!
It would explain why only things that show a profit are being privatised at this time, The government has no money to pay the “Sweeteners” that would be necessary to off-load a failing business.
It does not explain, however, why the interest in Fracking. Especially as both the Bowland Hodder and the Weald Basin studies state that although oil and gas are actually present, the chances of extracting them in commercial quantities should be regarded as low, at least until further testing has been done.
After the shock of the weekend voting, it will be back to “Business as Usual” in a couple of weeks, no doubt, with a few soundbites to smooth the electorate’s ruffled feathers.