Evaluate The Consequences For Public Services Of The Cuts In Expenditure

Submitted By xwang40
Words: 1874
Pages: 8
Open Document
Evaluate the consequences for public services of the cuts in expenditure announced by the present UK government.

For central government budget-making, the first plan is that income should match expenditure over one phase of the economic cycle. The key sources of revenue of central government are taxes and duties from individuals and corporates, tax allowances excluded, whilst the fundamentals of total managed expenditures will go to run government and deliver services, to collect taxes, and support grants and benefits (Flynn 2007). The Tories Party prefers to contemplate a reduction or abolition of the 50 per cent top rate of income tax budget. Reducing corporation tax and deregulating the labour market is likely to make expending shrinking, public services especially. (The Economist 20/03/2012).

The first impact of the budget’s cut in the top rate of income tax is to offer a banker on £5 million annually and to make living costs higher. At a time, the “squeezed middle” of workers will face rising fuel prices, higher energy bills and loss of child benefits. Besides, it is suggestive that millions of the seniors are likely to get trouble in real terms of pensions as a result of freezing pensioners’ tax allowances and a money-saving change (The Economist 24/03/2012).

According to the 2010 Spending Review, the Department of Transport was being given an average £3 billion for road maintenance between 2011 and 2015, and the government planned to lower 15 per cent in real terms by 2014-15 than its £12.8 billion budget in 2010-11, aiming to make £3.5 billion of annual efficiency savings across the rail network. But overall savings would not be made, higher repair costs and more potential extra claims by motorists against local authorities for damage to their vehicles would occur as a result of the deterioration in the network. In the long term, this could cost taxpayers more. (BBC News 13/03/2012).

The review reports that the Coalition Government tends to allocate an additional funding £2 billion in social care over the next four years, i.e. an increase by 0.4 per cent in real terms. Half made available will come from the National Health System (NHS), the reminder half from the general local government. The first positive insight of increasing budget for social care is to support the delivery of social care and to avoid demand upon social care due to the reduction of unnecessary hospital admissions, provision of sufficient resources to protect people’s access to care and the avoidance of further restrictions to services. Additionally, residents’ interests and the NHS will benefit from investment in social care (HM Treasury 20/10/2010). But spending on social care for the elderly in England was falling in 2012. It is estimated that £7.3 billion was being budgeted, and this led to a drop of 4.5 per cent in line with inflation. The ultimate result will be to restrict access to services as well as increasing the fees charged, in other words, only the poorest could receive care completely free. Also it seems to become a growing crisis in care for older people because an increasing number of the seniors are not able to get formal support as a result of shortage of carers (BBC News 30/01/2012).
In recent one decade, NHS received incomes not dependent on keeping their spending within a fixed revenue budget, but on the basis of how many activities they carries out, operating within a ‘Payment by Results’ system introduced by Labour Party since 1997. Its aim is to reduce waiting list (Flynn 2007). Further expenditure cuts in the NHS means an attempt at centralisation in which the centre will ‘set standards, monitor performance, put in place a proper system of inspection, provide back up to assist the modernisation of the service and correct failure’ (Flynn 2007). The building programme in the NHS will be blocked. Additionally, a shortage of staff will worsen because they are not paid enough to keep themselves in public services.
Show More

Related Documents: Evaluate The Consequences For Public Services Of The Cuts In Expenditure

Public Policy Analysis

A public policy is a course of action, implemented and followed by the government, to deal with a problem or issue within the country. There are multiple continuous factors that take place when it comes to forming a public policy. Recognizing the problem, formulating the policy, adopting the policy, implementing the policy, and evaluating the policy are steps that are used to create a policy. In order to find a solution, one must identify the problem or problems. The problem can be identified by…

Words 508 - Pages 3

Public Policy Leaders

today, the public has all types of demands that leaders and officials trying to meet and problems they are trying to solve. Some requests are able to be met because it is in the official’s power to fulfill the public’s desires. Most desires are reasonable and others are just flat out ridiculous. For a public leader to remain in his/her position, they must do what is right for the society as a whole not just for one individual. If the leader or elected official did not have a goal for the public when they…

Words 696 - Pages 3

Public Policy For Autism

would say some examples would be eggs, soda, and milk. 2. It is important for policymakers to consider both the indirect and direct effects of public policies because once implemented they could essentially cause a large impact on many different individuals. One public policy that I am familiar with would the New Jersey’s policy for autism. This policy helps to ensure the needs of individuals with Autism are contributed to. Two positives of this program would be that there is educational reform…

Words 487 - Pages 2

Public Policy Essay

An example of the law enforcement approach was the U.S. government’s response to the bombing of the World Trade Center in New York City on February 26, 1993, an attack that killed 6 people and injured more than 1,000 others. While it appears the public even believes non-military means will generally be more effective than military efforts in preventing future terror attacks, an overwhelming majority nonetheless feels that a failure to take any military action in response to the attacks will increase…

Words 623 - Pages 3

Q1 Public Policy Essay

American Government I Public Policy Formation in the United States In order to solve a dilemma or dispute in the country, there is a goal oriented course of action involved known as public policy (US History). Upon starting, the general goal of interest groups and many other individuals is to persuade decision makers to act in a distinct manner to achieve their goals. They can and will use ample tactics and techniques such as educating the public on general issues of concern. It is generally a guide…

Words 560 - Pages 3

Gun Control Public Policy

Public Policy, Elections, and Media There are a vast number of characteristics in the surveys that are utilized by the media when they are investigating the ongoing controversial policy of gun control. There was a reputable survey taken by Time magazine that posted their results that was apparently an error about the number of the fully automatic guns that people owned. The accuracy of the analyses of these types of firearms is usually exaggerated by the media when they release information to the…

Words 924 - Pages 4

Economic Efficiency And Public Policy

Chapter 12 Economic Efficiency and Public Policy Productive Efficiency -in order for production to be efficient output must be produced at the lowest possible cost -i.e. the lowest possible opportunity cost to the economy Firm Level -the firm must be cost minimizing, i.e. operating on its LRAC curve -if not, it is obviously not producing at minimum cost Industry Level -firms in the industry must be operating where MC is equalized across firms -if not, transferring production from…

Words 1046 - Pages 5

PSA and Public policy players Essay

Discipline remains an area that is governed almost entirely by legislation. Extensive service codes of conduct ensure that police agencies are among the most heavily regulated in the public sector, in recognition of the power that they wield over the population. Who is needed to make the necessary changes?: Members of the private sector: given the nature of law enforcement it’s difficult to compare it with the private sector and take away strengths. Careful analysis and consideration of characteristics…

Words 521 - Pages 3

War On Poverty: Public Policy Analysis

implementation. Heated debate ensues regarding “welfare queens” and “freeloaders” that scam the federal government for a handout in lieu of acquiring steady employment. Despite the prevalence of such bombastic and zealous rhetoric in certain corners of public opinion, the nature of poverty in the U.S. could not differ more from the picture their vitriol paints. Government programs that provide financial support to those entitled (defined as requiring the funds administered by the government to live a healthy…

Words 1143 - Pages 5

Public Systems Modeling: Systematic Identification And Evaluation Of Public Policy Alternatives

Public Systems Modeling: Systematic identification and evaluation of public policy alternatives. We use mathematical models to do this. Two main types of mathematical models: Optimization: Finding the best of many alternatives. Addressing ‘What should be’ questions.) Simulation: Finding the impacts of alternative assumptions (Addressing ‘What if’ questions.) Mathematical models: Consists of decision variables (unknowns) and parameters in equations and inequalities that together define a system. Example…

Words 545 - Pages 3