Budget Bollocks and Pension Potholes

George Osborne presented his new budget last week with liberalisation of the pension system.

Spinners and losers had a ball this week with Osborne’s budget. Gold and glory was promised to the old folks, and the rest could lavish in reduced tax on bingo and a 1p cut in beer duty. So for every hundred pint we buy, we save a quid. Thanks George that really changed my life!

The new pension reform is supposed to grant bucketloads of freedom to the walker-brigade. Apparently old proles will cruise around down-town in their new Lamborghinis, picking up blonde chiquitas gold digging for their pension pots.

George Osborne is a full blooded radical right-winger with wet dreams of a marginal state outsourcing services to international corporations, and he don’t hide it. Given permission by the voters in 2015, he will push for a shrinking of the public sector to a size not seen since the post-war era.

The old system needed reform but not in this direction. The reform will affect millions who have saved for a stable future. Now they are expected to carry the risk themselves, not all of us together as a society.

Sadly there is no organised opposition to the new reforms in the Commons, as Labour insists on it’s conformism and letting the coalition dictate the rules.



Money out the window

Students protested against more tuiton fees, but was defeated. Turns out Government had it all wrong.

The coalition’s decision to hike the tuition fees ceiling from £3,000 to £9,000 a year should save money for the state but might result in heavy losses.

As the number of graduates who fail to pay back student loans increases, the Treasure fears all economic gains from the fees hike could be lost. Experts have calculated that if the resource accounting and budgeting(RAB) rate of 48.6% is reached and breached, the government will lose money compared to keeping the old fees limit.

When the government introduced the new regime in 2010 they estimated that 28% of student loans would never be paid back, but this figure is now approaching 45%.

Raising the tuition fees was already damaging to students, now it is for everyone else too. Students leave university after 3 years with a Bachelor degree and £27,000 in debt due to tuition fees. What a great start to your career.

Repayments don’t start before graduates earn over £21,000 a year, which the Government thought most of them would do within a few years. It does not look like it will go that way any time soon. The ideologies at Conservative HQ and their Lib Dem minions have got their maths wrong. This system is stupid and unsustainable.