INDEPENDENT RESEARCH PROJECT | Jeanne RAILLERE | | OSBORNE’S SPENDING REVIEW | | User | 30/10/2010 | |

On the 20 October 2010, the British Conservative Minister of Finance, GO announced drastic budget cuts for the next five years. This will be achieved by the elimination of 500,000 jobs in the public sector, mostly by retirements. This plan aims to find 83 billion pounds of savings over five years, which, combined with the £ 30 billion tax increase, is expected to bring down the current deficit of 10.1% of gross domestic product to 1.1% in 2015
This plan is considered as the most drastic among the European Union and its most spectacular item is undoubtedly the scheduled elimination of 490,000 jobs among officials.
To justify himself, Osborne said that austerity plan is essential to avoid bankruptcy of the country, to keep away from the precipice and eliminate waste by restructuring the welfare state.
He also announced that there would be billions of pounds of cuts in social budgets. Unemployment benefits, housing benefits and assistance for the disabled will be severely reduced. So, in order to give credibility to its actions he had to prove that everyone is concerned with the Royal House budget also being reduced by 14%. The most affected departments are Justice, Home office, Culture and Environment. The BBC, meanwhile, will self-finance his famous World Service radio, previously supported by the Foreign office and face a freeze on fees for six years. The increasing age of retirement (66 years) is now scheduled to 2020. It seems that the only sectors that will more or less be spared are the health and foreign aid to development in accordance with his election promises.
These measures are likely to put the United Kingdom into recession when he had already been hit hard by the subprime crisis. Indeed, as denounced by the Labour, the poorest people will be more affected by the austerity plan. Poor people, disabled, working parents will hardly