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The Government have made it abundantly clear that in order for there to be any chance of economic recovery massive spending cuts in the Public Sector must be expected over the next year. These assertions have prompted concern amongst Public Sector Organisations and of course the public.
With the size of the cuts planned there can be no doubt that wherever the Government’s spending axe lands the force of it will have a significant impact on the victims
As such, at this time the crucial question becomes where exactly is the axe expected to fall?
In recent interviews George Osborne has revealed that we can expect to see a drastic change in terms of Welfare Benefits. It seems the Government will be taking a much tougher line on people who claim such Benefits simply because they prefer not to work.
Currently there are around 5 million people who claim permanent benefits in this country. Some of these claims are made by people who could return to work, but choose not to. George Osborne points out that this kind of spending in terms of welfare benefits cannot be sustained if this country is to recover. As such, it is the Government’s intention to make cuts of approximately 4 billion pounds in this area alone
However, with the current £156 Billion deficit being carried by the UK, we can be certain that the spending cuts will not stop there. In fact, it has been suggested that the spending cuts we can expect to suffer will be the most severe since the Second World War.
The Government have suggested that they need to cut around £60 Billion from the country’s annual expenditure and that this regime will last for at least four years. So where else will the axe fall?
It is widely agreed that Pensioners may fall victim to the cuts with an increase to the state pension age seeming more and more likely and cuts to social care.
Councils will also see their budgets slashed prompting job losses around the country and this may well be just the beginning.
The truth of the matter is with spending cuts of such drastic proportions it is extremely likely that we will all feel the impact over the coming years. After all George Osborne has made no secret of the fact that he intends to change the people of this country into a nation who know how to live within their means Find an Independent Financial adviser
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