On October 20 the British government will be formally announcing the cuts in its spending.
The process of assessment and negotiation has been going on for six months since the new coalition government was formed, you note that I didn’t say elected because the people cannot elect a coalition in the British system.
What every the reasons it is true to say that every Labour government has left office leaving the country in a financial mess, and Browns (you remember him, the former prime minister) government was no different in spite of his reputation for sound fiscal management. This time the figures are just off the scale. On an annual basis we were borrowing £1 for every £5 we spent. So a serious period of adjustment is needed. The greatest since the end of the Second World War
Everything was up for consideration, and it was interesting that Hillary Clinton felt the need to help by reminding us of our military commitments. This intervention reached the very top of government.
The spending review has other economic and political consequences. If you are thinking of moving staff to the United Kingdom it is going to be much harder. The purge on benefit cheats has been linked to it a cut in the number of overseas workers. This means people from outside the European Community, including the USA, will find it very difficult to work here.
Cutting public spending has huge economic implications. The true socialists of Europe, the French, have seen millions going on strike and marching in the streets. For business the transfer from public sector spending to private sector wealth creation will take some years. For businesses doing business directly or indirectly with the state here in the UK need to look carefully are their business model. It may not be there in the years to come.
So for businesses looking to set up over here you need to look carefully and get some good advice, things ain’t what they use to be. And rather that say we are having spending cuts, why can’t they say we just do not want to borrow any more money