2015 Spending Review

What can I say except

As I work in local government, I was particularly interested in the review.

Now lets see:

Next 4 years Council budgets will remain static against a backdrop of increasing demand for services;

Councils will be allowed to keep all business rates (£11.5 bn per year) in return for losing their revenue support grant (£18.5 bn per year). That looks like a reduction to me, so not sure how this fits in with the promise of a static budget. It also means that Councils in 'thriving' areas will generate more income and those is deprived areas less income - the revenue support grant is supposed the spread the wealth - more cash to Council's with more demands on them;

Public Health budgets being cut (so much for protecting the NHS budget) and funding preventative services;

Tax credits will stay - but it doesn't really make any difference as they are being replaced by Universal credit (which has been cut) .

And the OBR - all this is based on guess work - eg. increasing tax revenue and lower interest rates - oh how things could change before the 4 years are up.

Just as well I'm getting out of this local government game next year.

Nuff said

 

Sorry but the OBR is a joke. Endless forecasts that nearly always prove to be wrong. Sadly the country will be going broke in the near future when the bond market goes bang and inflation rises causing our national debt repayments to spiral out of control.

 

I was amazed to read that low income families in receipt of tax credits are "big winners" - because they're no longer going to have their tax credits cut (well, not for a couple of years or so).