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The facts say we must vote Labour out of power

Since Labour came to power in 1997 the gap between the rich and the poor has widened. Labour has failed to tackle poverty.   Since Labour came to power in 1997 manufacturing output and jobs have declined at a faster rate than under the previous Conservative Governments. Industrial production continues to decline in the UK while it is increasing in USA, Japan, Germany, France, China, Canada, Italy and in the Eurozone as a whole.  The trade weighted value of sterling has fallen by about 25% since 2007 - a faster decline than when Britain left the ERM in 1992. The UK has world's second largest negative balance of trade second only to the USA which is a much bigger economy. In contrast China, Japan, Germany, France,  the Netherlands,  Norway, Russia, Sweden, Denmark and the Eurozone as a whole all enjoy positive balance of trade surpluses   Exports fell by 4.4% in January 2010 compared to December 2009. Between early 2008 and autumn 2009, GDP fell by 6.2%. The recession lasted 6 quarters longer than any other G7 economy.Labour Government spending as a share of GPP rose from 44% in 2006 to 52% in 2009- compared to 48% in Germany.The Labour Government’s projected deficit of £167 million is equivalent to 11.8% of GDP and the Government has no credible plans to reduce it. This compares with a deficit of only £6 billion when Labour came to power in 1997.The Labour Government’s budget deficit as a share of GDP is on a par with Greece's. It is the highest since the Second World War and will be the biggest of any G20 economy according to the IMF.The UK’s National Debt will rise from £617 billion in 2009/10 to £1,400 billion in 2014/15. It is now at its highest level since the Second World War. According to McKinsey the total indebtedness in the British economy as a share of GDP is the highest amongst 10 major economiesThe Labour Government is now spending 4 pounds for every 3 it receives in revenue.The Labour Government is now borrowing 25 per cent of what it spends. And 25 per cent of what the Labour Government borrows is spent on pay interest on the Government's borrowings. The Labour Government now spends 52 per cent of GDP which means that each worker on the private sector has to support and pay for at least one worker in the public sectorNearly 6 million on benefits dependent on taxpayers for their benefits.  Over 6 million on the public sector payroll dependent on taxpayers for their incomes. There 2.5 million unemployed and rising. Our rate of youth unemployment is the highest on record since the Second World War.Inflation is now running at 3.5% and interest rates are rising.These facts and figures make an overwhelming case for voting Labour out of Government and ensuring that a discredited and bankrupt Labour Government is not kept in power by any backroom deals such as a possible coalition with the Liberal Democrats.

David Giles ● 6010d6 Comments ● 5996d

Council Rich List - Why it matters

Whatever you think about the Taxpayers' Alliance it is hard to deny the importance of highlighting just how excessive pay in the public sector has become.I spent an evening in the company of the HR director of the firm I work for. We are a medium sized British company who are quite successful and have weathered the recession well. He told me that the main problem the company faces is staff retention in the face of recruitment from the public sector. We have lost three relatively senior executives over the last year to local authorities. All of them were relatively well paid but they moved because they were increasing their salaries, would get a non-contributory pension, would have longer holidays and shorter working hours. He expects more staff to leave in the coming year. On the other hand he never sees a CV that has been submitted from someone wanting to work with us from the public sector.It is pointless raising salaries because we would never be able to compete with what is on offer. He estimates that our profits are hit by about 20% due to the costs associated with retraining replacements and lost revenues from losing good people. This is a significant stealth tax which is strangling our economy.Before Labour came to power in 1997 public sector pay was significantly below the private sector average but people chose it because of increased job security and a sense of public service. Public sector pay increased dramatically because it was argued it was necessary to improve the quality of staff. Now it exceeds the private sector even without allowing for fringe benefits.People in the public sector should never get paid six figure sums - they simply can never be worth it especially when you remember the cost of their pensions to the taxpayer will run into millions of pounds. Private sector staff earn large salaries because the company owners think it is in the shareholders interest because of the revenues the person brings in. This doesn't apply in the public sector.The biggest problem with all of this according to our HR director is that in a few decades half the revenues that local government get will be going towards funding the deficit in the staff pension fund and services will have to be cut significantly. The next Government of whatever hue will have to grasp this nettle or the country is in serious trouble.

Ellen Kearney ● 6024d1 Comments ● 6003d