Ttosca…re your post,the argument re party politics/ideology fades when looking at international comparisons that show our welfare bill was rising faster than Europe during the boom, and has fallen faster than ours since 2010, were we growing more pensioners during the boom, and is Europe now turning theirs into ‘Soylent Green’ to feed the rest of their population?
Clearly pensions are a large part of the of the UK welfare/benefits Bill, and as the percentage of retirees increase our bill WILL go up, but that bill will not account for our rise,
The increase in our welfare/benefits Bill has risen as a direct consequence of our immigration policy, as just taking the under 24-year olds unemployment rate, never mind the adults, as 1.5 – 2.0 million came here and the majority found work, how can the figures go up (using the May/July quarter in each year) from 580,000 in 2004, to 711,000 in 2007, and reach 921,000 when Labour left office, WITHOUT the cost of unemployment going up?
Now that figure in itself might not be large, but if they were the ones IN WORK, what would the tax RECEIPTS and personal spending have done the the welfare bill and our national finances, even assuming that the economic growth would been the same?
As property/rental prices shot up due to the increased demand for housing from 2004, how much more did Housing Benefits costs go up by?
What was the dilution of domestic pay rates with those 1.5 to 2.0 million new employees in the job pool, rather than a tighter job market with our unemployed in work – as the higher pay rates would go, the less Tax Credits would be needed.
Businesses don’t tend to pay up when they have an abundance of employees to chose from, especially in the low skilled workforce, it’s when the workforce numbers are TIGHT, that wages increase – which is why it is always better to focus on CREATING private sector jobs, not losing them and then telling them (like Miliband) the State wants to control your profits when they get in power.
Lower taxes TO INCREASE THE POPULATIONS TAKE HOME PAY should also be in a governments fiscal tool box, but Labour taking an annual Budget SURPLUS and then over years, with an unbalanced economy was cumulatively borrowing more and more money to pay the annual bills, and then left that £150 billion annual deficit (the LARGEST of all the European countries including the basket cases), that option was severely limited.
Furthermore the annual service bill of running that £1.3 trillion national debt (that was around £400 billion in 2001) currently just over £50 billion and will increase substantially as the debt and interest rates rise, has to come out of our annual government spending budgets.
_So penalising businesses/employers due to government incompetence running the country destroys investment and job growth, as so does the sending out of our children from schools equipped only for low skilled work when there is less of it about – especially when still emerging from the larges recession in 80-years and those businesses are still concerned about investing/employing for the medium to long term, and (due to Milibands rhetoric) the likely prospects of a Labour government in 2015.
“Uk Chief CFO’s feeling upbeat and ready to take risks”
www.cnbc.com/id/101307839
So in the meantime just think what government could be doing for ‘the people’ via more tax cuts and focused government spending IF during the 2000’s the Labour government had NOT made several key irresponsible decisions on migration, annual deficit spending and increased welfare spending during a global boom, and the unbalancing of the UK economy, prior to the credit fuelled bust in 2007.
The money was there for any government in the decade to 1997 to 2007, to make a huge difference to our social and economic future and Labour blew it. Huge 'sticky plaster' unreformed spending they called economic 'growf' was unsustainable and we have the debts (and limited options) to show for it, by giving even more fiscal help to compensate for negative 'real' earnings and help the poorest in society.