Cuts will mean misery

I MUST reply to Mirfield Town Councillor Nottingham’s letter (Reporter, January 7).

By The Newsroom
Saturday, 22nd January 2011, 4:20 pm

Like the Conservative economics policy at national level, it is way too simplistic.

Two years ago, Britain, along with much of the world stared into the financial abyss, largely because of the irresponsible actions of bankers. There was a calamitous collapse of tax revenues and the global credit crunch caused deficits to rise on every continent.

Before this crisis, Britain’s debt was second lowest in the G7 and lower even than it was under the Tories in 1997. Money was spent by the Labour government to boost the economy and prevent recession turning into deep depression. They supported the banks, in particular RBS and Lloyds (remember what happened to Northern Rock through reckless lending?). Jobs were saved, home owners were helped to avoid repossessions etc. That was the correct thing to do at the time.

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Obviously, any party in power now would have to make cuts as the economy has improved, but the reckless Tory gamble to make cuts so quickly, so deeply and in some cases so thoughtlessly, will result in high unemployment, poor public services and private misery for thousands of people in this country.

Meanwhile, the head of RBS, Stephen Hester, takes home £6m plus in bonuses, salary and other payments this year. I can’t see signs of George Osborne imposing a windfall tax on bonuses upon his friends in the city as Alistair Darling did last year. Both Lib-Dems. and Tories scoffed at that but it brought £3.5 billion into the treasury.

David Cameron recently made the right noises about bankers’ bonuses but his promises rarely result in action I find. These disgracefully high pay-outs to bankers should be stopped. Likewise, Conservatives and their friends in the city should stop using the previous government as a convenient scapegoat.


Fernhurt Road