Shock and awe finances

[CHIMO]

When George Osborne sits down in the Commons on Wednesday after announcing the comprehensive spending review, he will have set out a package of cuts that will fundamentally undermine the welfare state. Yet there does not need to be a single penny cut from public services – or a single job lost.

These cuts are unavoidable, we are constantly told. Our economy is in a mess. Public spending has been running out of control. The country has "record debts". In what amounts to the political equivalent of shock and awe, the government has drilled this narrative into us so we simply accept our fate. But none of this is true. Our situation has nothing to do with public spending. The collapse in the finance sector, due to greed, caused a sharp recession and higher unemployment, tax revenues shrank dramatically, and the welfare bill increased.

In making cuts, the government is making a political choice, not responding to "record" debt. Research by my union shows that, between 1918 and 1961, the debt was more than 100% of GDP. Osborne's budget papers put the current debt at 53%. Between 1918 and 1961 different choices were made. We established the NHS and welfare services, built council houses, developed state education and pensions, and invested in industry.

Instead, Osborne is choosing to realise a long-held ambition to rid the rich and powerful of the burden of the welfare state. The way we pay benefits to those in need, how we get people back to work, our ability to collect the tax that funds healthcare, education and other vital services for millions of people – no corner of government will be spared the axe.

http://www.guardian.co.uk/commentisfree/2010/oct/17/finances-cuts-public-services-welfare