Treasury Wanted To Go Even Tougher

Dec. 17, 2009 - PRLog -- London (Shakespeare Finance) : In one of the most astonishing discoveries, BBC has learned that the Treasury wanted even tougher action proposed in its pre-Budget report.  

Tightening its grip over the affairs of UK, the Treasury officials rolled out their intentions pertaining to Britain's record £178bn deficit would be paid off and where cuts would come.

The phenomena is ascribed to the recent elections to be held in UK. The prime minister is of opinion to reiterate his pledge thus boosting the spending by £30bn.

The current pre-budget report rolled out some of the most stunning measures taken as belt-tightening steps.

The only point which Mr Darling is keeping in mind is to boost public spending considerably by  £31bn, intending substantial gains in the wake.

As according to BBC political editor Nick Robinson, the Treasury wanted some serious action and this is one of them.

However, Ed Balls, the schools secretary has been reported to argue passionately in favour of an increase in the schools budget.

There is a widespread debate on the issue as according to the Treasury denying a report, published in one of the leading national dailies, Guardian suggesting that No 10 in fact blocked a plan intending to impose a VAT rise above 17.5%, on an assumption that it was never an option.

Although, as there is bound to be criticism from some quarters, the experts are of the opinion that the Chancellor has not outlined the relevant cuts direly needed to reduce the deficit.

However, if one goes by the study of The Institute for Fiscal Studies (IFS), one learns that public spending is facing a £36bn squeeze from 2011. This is in addition to £15bn cuts needed yet to be identified. Barring health and education, the decision will affect defence, transport, housing, and higher education.  

According to Justice Jack Straw the government has already spent an amount of £4bn less on unemployment benefits and income support for the unemployed as against the needed amount.

Conservative, Philip Hammond sees the report as an election tool. There is a widespread concern as well pertaining to the high levels of debt for a generation.

TUC General Secretary Brendan Barber however is of the opinion that it is better to avoid cuts to services and consequently warned of possible industrial action over the "unfair" public sector pay freeze. He demands fairer contribution from the wealthiest, accounting to 10% of them contributing 5% in the wake of the current decision.  

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