Thursday, 8 April 2010
National Insurance and David Cameron
People don't seem to be remarking on David Cameron's abandonment of his early cuts position. Only a few months ago he argued, somewhat eccentricaly, that the best way to deal with a recession was to reduce government spending. As he found that position unpopular, he now appears to be going in completely the opposite direction over National Insurance. If he can abandon his beliefs that swiftly, can he reall be trusted?
1 comment:
Ahem, no James. The National Insurance cut will be funded out of cuts in government waste. Waste which Brown says has to be put off to next year for some unknown reason. Raising National Insurance will cause employers to recruit less and therefore employ less people who could be contributing to the tax base.
If you understood anything about running a business you would know that cutting out waste can be done effectively without affecting customer facing services at all.
Where to start... how about:
NHS IT: £6.2 billion but costs have now doubled to over £13 billion.
Quangos: There were 1,148 quangos in the UK in 2008, employing 534,000 staff at a cost of £90 billion(equivalent to £3,640 per household). These are not doctors, nurses or teachers.
Advertising: £2.5 billion spent on marketing and communications.
Tax Credit waste: Losing £2.8 billion on tax credits through fraud, error and overpayment including, paying £10 million to people who had died.
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