"Today’s the day when Britain steps back from the brink. When we confront the bills from a decade of debt. A day of rebuilding when we set out a four-year plan to put our public services and welfare state on a sustainable footing – for the long term. So that they can do their job – providing for families, protecting the vulnerable and underpinning a competitive economy. It is a hard road, but it leads to a better future." The Chancellor of the Exchequer, the Rt Hon George Osborne MP. Opening remarks to his Spending Review Statement.
THE AGE OF AUSTERITY has arrived! George Osborne the Chancellor of the Exchequer, in his Comprehensive Spending Review, has announced that £81billion of spending cuts will be made over the next four years affecting every walk of life.
Local people are seemingly powerless to affect the situation in any way. We are at the mercy of decisions, policies and economic forces far beyond our control. However, in another sense our long-term response to the public spending cuts will determine whether the measures taken by the Government are successful in reducing the national deficit and leading to a stronger economy.
How will you respond to the new economic circumstances? Will life carry on as normal and will your spending on luxuries and essentials continue unchanged? Will your spending in local and non-local shops, pubs, restaurants and businesses increase? Will you look at buying that new house? Will your wish to decorate, extend, or otherwise improve your home, continue as planned? Will you now book that holiday, leisure trip or outing you have promised yourselves?
We are now all in the "Big Society" together, and it is hoped that we will all play a bigger part in keeping our neighbourhoods and communities green, clean and safe, and help the state in looking-out for our more vulnerable neighbours. In doing so we can offset some of the impacts of the cuts in public services. Will you play your part in the Big Society?
If we intend to continue as before - or perhaps even increase our spending and commitments - then the Government's reshaping of our economy just might succeed as they intended.
However, the age of austerity implies that we have to "tighten-our-belts" and "cut our cloth" according to the new economic circumstances. The reaction will be to save, not spend, to cut back on the luxuries, to review what we consider essential. ...Of course those affected by unemployment, welfare reform and rising domestic debt and poverty will have no choice in the matter!
In the next few weeks, months and years the majority of us will comply with austerity in different ways - some will undoubtedly prosper, whilst others will suffer. Some will take the road of resistance and add to the potential for social strife not seen in this country since the 1980's.
However, the Government gamble, is that for the majority of us, life will continue as before - albeit our lives will be more austere!
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