On Wednesday,Britain’s government took up harsh spending cuts for the first time in the decades. Britain government pulled down the budgets around a fifth and taking the comprehensive welfare system of the country. Due to the cuts as many as million public sector will have no jobs says Finance minister George Osborne. The finance minister even spoke about the age at which the state pensions are paid for old people in the age of 66.
The present coalition government is facing the worst economic inheritance which means a stronger Britain. Over the past four years Departments in Britain are facing average cuts of about 19% which is lower then the expected rate. Oppositions ,unions and some economists feel that the cuts are actually gamble which is plunged the sixth largest economy. At present the Britain’s deficit is about 154.7 billion pound which needs to be cleared by the coalition government. The government would cut about 490,000 jobs in the public sector within four years which is unavoidable for Britain.
The government is thinking to save about seven billion pounds for a year which would result in some major changes. The main system which will be paid attention will be welfare system, public sector and child benefits. The state pension age move raise will save around five billion pounds for a year explains the minister. The minister or the chancellor feels that the cuts will be the greatest reform for the welfare state.
Filed in: Business and Finance
Comments Off
