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In the first of a series on world leaders, Miles Deverson takes a look at Nicholas Sarkozy
It has become common practice for UK governments to publish spending reviews of this nature, indeed in recent times it has become a regular fixture – with a post budget review published every two years. However, in lieu of the government’s proposed austerity measures, greater significance has been placed on this year’s review – designed to set out the government’s new direction on public spending.
The review has set out the government’s planned spending cuts as part of their attempt to tackle the UK’s considerable budget deficit. The scale and severity of the cuts have been described as the biggest since the 1970’s or even World War II.
Set out are plans to make £81bn in cuts, which is £2bn less than set out originally in the budget. The area’s that look set to be hit hardest include the Police and Welfare – which is set to undergo potentially radical reform under Ian Duncan Smith. However some areas such as healthcare have been ring fenced and international development is even set to see an increase in funding.
The plans are designed to eliminate the UK’s structural deficit by 2014/5 – the end of the Coalition’s first term in office. However the plans could also see the loss of up to 500,000 public sector jobs – with the hope being that the private sector will grow to fill in the gap. The review has also meant that there will be a significant decrease in prison spaces – meaning further reforms will be necessary in order to decrease the UK’s prison population.
Unsurprisingly, the review is likely to polarise opinion and has already evoked strong opposition. Labour’s Shadow Chancellor Alan Johnson described the planned cuts as “reckless” and it is likely that he will set out his party’s alternative plan in the coming days. The plan is likely to involve a slower deficit reduction plan and a greater emphasis on taxation. There are also planned demonstrations across the country in opposition to the cuts – with Trade Union opposition also likely.
Today Osborne moved to defend his cuts, refuting Johnson’s claim. Osborne claimed that the cuts were fair and were set to hit the top 10% of earners the hardest.
The efficacy of the coalition’s planned measures remains to be seen. However it is becoming increasingly evident that not only was the review divisive, it may well mark the most radical shakeup in the nature of the UK’s public spending for generations.
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