Wednesday, 9 December 2009

Cutting The Spending Cake - Simples

Here's a little hint for the politicians grappling with our levels of borrowing and trying to square the circle of maintaining frontline services whilst also getting to grips with cutting public spending. There is no point whatever in talking about ring fencing departmental budgets. All that does is entrenches waste and inefficiency. The money flows inexorably towards the bureaucrats and the pen pushers.

What should be ring fenced are services. A government, any government, decides what its priorities are and allocates the necessary funds to those services. There's no point in ring fencing a budget the size of health or education. You have to allocate resources to priorities within those vast budgets and make tough choices about what will have to be cut once those priorities are provided for.

That is the way to cut spending. Start with a clean sheet of paper. Decide what you want to do and what is less important and cut up the spending cake. Simples as everyone seems to be saying nowadays.

No comments:

Post a Comment

All comments are published at the absolute discretion of the owner of this blog, but there is a general presumption towards publication. This is a free speech blog.