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Across Channel, UK cuts jobs, stokes public anger
REUTERS, Oct 21, 2010, 05.22am IST
Britain will cut half a million jobs, slash the welfare state and raise the retirement age as part of an unprecedented cost-cutting drive.
LONDON: Britain will cut half a million jobs, slash the welfare state and raise the retirement age as part of an unprecedented cost-cutting drive that will test the strength of both the economy and the ruling coalition.
Conservative finance minister George Osborne's spending review on Wednesday turned up the heat on the Liberal Democrat coalition partners and kept alive a debate about whether Britain's economic recovery can survive the cuts.
Unions reacted angrily but public protest in Britain has so far been muted compared with France. "Tackling this budget deficit is unavoidable. The decisions about how we do it are not. There are choices. And today we make them," Conservative finance minister George Osborne told parliament. The fiscal squeeze over the next four years will total more than £100 billion ($157 billion).
Analysts are not convinced, however, that the government will be able to see through the cuts through especially given that it has moved more of the burden on to the welfare budget, lopping off an extra £7 billion on top of the £11 billion of savings previously announced.
As a result of the welfare raid, budgets for government departments outside protected areas like health and overseas aid would shrink by 19%, not the quarter announced in the budget.
REUTERS, Oct 21, 2010, 05.22am IST
Britain will cut half a million jobs, slash the welfare state and raise the retirement age as part of an unprecedented cost-cutting drive.
LONDON: Britain will cut half a million jobs, slash the welfare state and raise the retirement age as part of an unprecedented cost-cutting drive that will test the strength of both the economy and the ruling coalition.
Conservative finance minister George Osborne's spending review on Wednesday turned up the heat on the Liberal Democrat coalition partners and kept alive a debate about whether Britain's economic recovery can survive the cuts.
Unions reacted angrily but public protest in Britain has so far been muted compared with France. "Tackling this budget deficit is unavoidable. The decisions about how we do it are not. There are choices. And today we make them," Conservative finance minister George Osborne told parliament. The fiscal squeeze over the next four years will total more than £100 billion ($157 billion).
Analysts are not convinced, however, that the government will be able to see through the cuts through especially given that it has moved more of the burden on to the welfare budget, lopping off an extra £7 billion on top of the £11 billion of savings previously announced.
As a result of the welfare raid, budgets for government departments outside protected areas like health and overseas aid would shrink by 19%, not the quarter announced in the budget.
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