From what I gathered listening to Radio 5 Live on Wednesday, 20th October 2010:
Prime Minister's Questions 2 with Ed Miliband
Prime Minister's Questions started promptly at 12pm. Wasn't sure whether this would take place or not considering the importance of The Spending Review today, but it did. Ed Miliband came across the weaker leader in his second stab at PMQs - stammering and repetitive, seemingly lacking confidence and authority. Cameron was enjoying jesting the opposition. Whilst Ed was persistent in trying to get Cameron to agree with him that an inability to reach a certain unemployment figure next year would be infallible evidence enough of government failure, the right-honourable-gentleman Ed, had failed himself to make an impact. The most resounding 'sound-bite' of that exchange was Cameron's trumpet: "You can't attack a plan if you don't have a plan yourself".
Then followed Questions from the rest of the House, and George Osbourne's eagerly anticipated Spending Review at 12:30pm.
George Osbourne's Spending Review
Made references to the OECD (Organisation for Economic Growth and Development), and said that he used three main guiding principles in making budgetary cuts.
1. Reform
2. Fairness
3. Growth.
On Reform:
Public reform to meet today's population, and give more attention to 'Big-Society Projects'. This latter reference got a few laughs from the house. Talked about the 'Citizenship Programme', the Queen's civil list being reduced, and reform to Social Housing. Present tenants stay the same for now, but new tenants will have to have a more 'flexible' tenancy under the 'Decent Home Scheme'. Osbourne was quite proud to trumpet how in his view, he's part of the first government of this country to honour the UN's commitment to Global aid. It is to be ring-fenced, untouched by cuts. He also proposed a new National Security Strategy.
On Fairness:
A repetetive mantra was made "Those with the broadest shoulders will contribute the most". Talked of a permanent levy on the banks, and mentioned a Code of Practice. £900 million has been spend/deployed to tackle Tax Fraud, and Benefit cheats. On Welfare Reform, there will be a raising of the pension age. According to the (John) Hutton Report, titled after an ex-Labour minister, an increase in National Insurance contributions will be seen. A 'Universal Credit' will also be introduced over the next two parliaments, and £2 billion will be spent on apprenticeship schemes to be inclusive of adults too. There will be a new cap on benefits. Universal Benefits to do with Child Benefit and the Elderly will remain, consistent with election pledges made during their campaign. There will be an increase in Health spending. 'Equitable Life' is to compensate those who lost out to regulations - though the details for qualification sounded complicated.
On Growth and Recovery
The 'Train to Gain' scheme is to be abolished. The Science Budget is to be protected at £4 billion a year. Britain is apparently a world leader, and it makes sense to continue funding. Mentioned a Green economy, Arts heritage (museums and art galleries to remain free) and Sport. The commentator for Radio 5 mentioned that the Labour Party front bench were noticeably silent. Osbourne mentioned that deals had been made with the BBC, and referenced some Transport projects a part of investment in infrastructure. On education for children, he mentioned that the schools budget was to rise every year, and a 'Pupil Premium'would be introduced. He also mentioned that the 'Building for Schools Programme' was inefficient, thereby explaining it's suspension.
Osbourne's conclusions:
- Claims to have restored sanity to public finances
- Has increased expenditure for Schools and the NHS
- In a last jibe to the Labour opposition, he said that having received a list of considerations by that party, he has been able to reduce governmental department spending from 25% to 19%.
The Shadow Chancellor's Reaction
Alan Johnson (the Shadow Chancellor) spoke afterwards in reaction and response to the announcement. Opened by saying the the Coalition Government were cheering the deepest cuts in a generation. From the radio commentary, Johnson came across as more confident, convincing and authoritative compared to the shadow leader. Made a few humble, self-deprecating jokes, denounced a lot of what the chancellor said.
Personally, listening to the announcement, it sounded plausible, and rational. Almost convincing. But hearing the shadow Chancellor speak helped to frame another, arguably more realistic, perspective. It's an extremely tough budget, with 490,000 jobs in the Public Sector to go sold with attractive packaging. I was waiting to hear (during the announcement) more bold and direct statements for things might affect me and the people areound me more directly. But there weren't many. It will take a while for experts to ponder and work out all of the figures to come to a more comprehensive outcome as a result of this. I'll be hoping to keep track with the latest interpretations.
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To look up (stuff I didn't get during the announcement):
Equitable Life
Full title: 'The Equitable Life Assurance Society', a life insurance company in the UK. Lost money owing to 'unhedged liabilities' during the term of the Labour Government. Osbourne has pledged £1.5 billion to compensate customers who lost out.
HMIC
'Her Majesty's Inspectorate of Constabulary'. An independent organisation assessing the police forces and policing activity.
RPI
UK-specific, the Retail Prices Index, a measure of inflation published monthly by the Office for National Statistics. Measuring the change in the cost of a basket of retail goods and services.
Annuities - any recurring payments
Precept - a commandment, instruction, or order intended as an authoritative rule of action.
Ombudsman
An intermediary between an organisation and some internal or external constituency while representing the broad scope of constituent interests.
