New Year New Thinking January 2014.

Civil Service not Fit for Purpose. Reform or Discontinue..

THE PROBLEM

Things are not getting better

Government borrowing and the National Debt remain too high. The myth that things have and are getting better is wrong and misleading. 

We are nowhere near the pre 2008 levels of GDP or productivity and I can see government borrowing continuing to grow and make the bankers rich way beyond 2017. 

Furthermore, some of this future borrowing will be at even higher interest rates making it even more difficult to run a balanced budget. 

There has been no sustained increase in either the value or the volume of manufacturing output or exports. Given the level of imports necessary to produce increased physical export of products, the fall in exchange rates which on the one hand make us more competitive in international export markets, while on the other adds costs and increases prices of goods sold in the UK. 

Financial sector lead growth and increased house prices are, in the medium and long term a bad thing not a good thing unless we sell all the houses to foreigners and live in tents!

 London too big

The apparent, yet false growth created by London simply increases the cost of living for those of us who live in the capital and a rise in anger and frustration from an increasingly congested city with inadequate infrastructure. 

THE SOLUTION

Less Public Sector Spending 

Further cuts are needed. Both Central and Local Government need to do less at all levels and stop duplication.

We must halt the massive waste and inefficiency associated with public sector and quasi public sector (like the BBC’s £100m right off for failed digital projects) and delivery of services. 

Public sector wages, pensions and number of employees needs to be cut further.

We must reduce the volume of activity carried out by and paid for by Government. A public sector of almost 50% of GDP is a continuing economic and social disaster leading to further national decline. 

We must reduce Government activity to less than 37% of GDP over the next 5 years and keep it going down to create a better and more prosperous Britain.

Where and what to cut is obvious to me, if not to others. It can be done. We just need the will to do it.

  Geographic Rebalance

There also needs to be a move away from Government activity on national matters being performed in London and moved to other parts of the UK (where costs of land and labour are far less) alongside further devolution to regional and local government of decision making and delivery.

 However, in this transfer of power and delivery to local level, costs must go down not up. 

Closer scrutiny is required on ensuring continuing cost reduction during function transfer of decision making and delivery so costs remain on a downward trend.