Don't Stop At £25 million pa Reductions

The target being set in this exercise is a paltry one - about 2.5% of current overall government spending. That should be something a competent public sector can deliver almost without blinking.

The danger is that £25 million will become an end point whereas the administration should be looking for every effective reduction in costs it can implement. Over the last period of time we have

  • supposedly lost VAT revenue variously stated to be £150-200 million pa ;
  • dramatically diminished the General Reserves of the Island
  • projected that £100 million pa will be diverted from public services to pay public sector pensions
  • indicated that retiring ages will have to increase to age 74 for non-public sector employees
  • done very little to handle the growing (£500 million currently) MEA debt

 

Why the contribution is important

Against this backdrop we should not think "we have done the job" if savings of £25 million pa are found - it is only scratching around the edge

by dpfellows on May 14, 2017 at 11:02PM

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