The IMF have had a look at our books as they periodically do. They reckon there is a £30b shortfall so tough decisions or taxation increases. The latter depends on what Labour can raise without increasing income tax. There is also scope for altering where the available money is spent. The IMF has been saying for a long time that the social side of governance must be sorted out.
It's interesting to consider the cut in NI in relationship to this also taking money of none doms and spending it along with the current high taxation rates for the majority of citizens. The headline gains for people due to the NI cut. Well pick a wage bracket that relates to a significant number of voters. The bottom income levels don't represent a high proportion of people.
The recent change of needing 18hrs work to claim benefits rather than 15 is an interesting one. They say due to the 15hrs turning into a lifestyle option. Some companies misuse the zero hours contracts but most need to plan to have an adequate workforce available all of the time. This indicates that many will effectively offer 15hrs work. 10 wouldn't attract people. Variable hours interferes with support packages.Some can get more than one "job" care homes can cope with that to some extent. I suspect we will see a change to fixed hour contracts. Companies can plan on that basis however they arrange it.
Councils. MrsT shifted the burden of cost from various taxation sources to the current system. She used a rather unpopular variation where anyone in a house who worked paid a contribution. So Major switched to how it works now, doesn't matter how many people in the property work. B'ham goes bust. Well it's the biggest and similar smaller areas have the same problem and many state that the current take is unsustainable. Some are working on reserves. This has come about via cuts and controlled price increases rather than looking at ways of improving efficiency 1st. The Tory also made a change - what councils can do with business rates. They say to encourage councils to do things to encourage more businesses. Bit like the above lifestyle choice - appeals to a certain type of voter who doesn't think past the statements. One thing influences this area and it's the only one - the sustainabllty of the business when it's set up. B'ham for instances does have areas where shops flourish. In some places all of the high street shops or most of them finish up shut. If rates figure in this the only fix is to pool money from other areas that take more. It would seem going on one Tory MP's speech that some small business no longer pays any at all. A poor area. LOL another f'ing mess and the only probable fix is an increase in rates.
