NHS - Enough!

Firstly, let me address some questions to those readers from the private sector.  Public sector employees can think about answers but I doubt you will get it.

So, In the private sector, do you believe that the board of directors or your division's managing director would be calling, year after year for more money to be given to them while offering no guarantees of service?  Let me correct that, while stating that you may not be able to provide a service at all.

Getting specific, do you think it acceptable that the NHS have a ring-fenced budget?  Do you believe that any business in the private sector would be guaranteed that whatever their performance the organization will receive year on year growth in their funding?   Is your business one where efficiency or lack of it has no effect on the salaries or bonuses of the workers?  Where some of the workers are able to bring in private work and carry it out without anyone talking of a conflict of interest.

Of course these questions all relate to the UK's 'envy of the world' - the NHS.

Socialist politicians who are funded by unions (who now mostly represent public sector workers - with a very large contingent from the self-same NHS) have managed to hijack and effectively close-off any debate about the NHS and politicians of all hues are falling over themselves, to throw ever more money at the NHS.

Le's be clear.  People are living longer, so that presents a natural additional burden upon the NHS.  This is also changing the patient 'mix' for the NHS - more elderly patients with geriatric illnesses and longer times, in hospital, to recover.  Further, people are living longer because of advances in medical science.  These advances though, don't come cheap.

Add to that the usual problem of idiots abusing the NHS - attending Accident and Emergency departments because they have a cold or a headache or some minor ailment.  Layer-on also other abuses by non-Britons who receive treatment, for which neither they nor their governments ever pay and you have a classic squeeze.

That would be the time that any other organization would look at how they can re-organize and learn to adjust their methods and spending plans to meet straitened times.  Time to root out system and process inefficiencies.  Time to look at manning levels, especially middle management.  Time to examine contracts and renegotiate with suppliers - be they PFI financiers or drugs suppliers or nursing unions or doctors and consultants.

This though, doesn't happen in the NHS.  Instead, they simply whine about cash constraints, wheel out some bleeding wounded and allow the level of service delivery to fall and fall and then blame this on 'lack of funding'.  In any other organization, heads would roll but instead, we see and hear politicians promising ever and ever higher amounts of funding.  Funding which will not actually go into service delivery but rather into the pockets of NHS staff - think about that when you next see your doctor or visit the local hospital.

The NHS is a classic example of a nationalized industry - it is there for the benefit of the providers and not for the benefit of consumers.

That is a sorry state of affairs, in this day and age, when people have the advantage of seeing the massive benefits that have already accrued from the state getting 'out of business' but what's worse is that there is no politician that has the courage to call-out the NHS and demand that they change - not one.

Ask yourself if we really get value for money, from the more than £100 Billion that is spent on this service, every year.  Ask yourself if you are prepared to pay ever higher taxes to fund the NHS - if yes, how much more?  5%?, 10%?, 15%?   Ask yourself if taxes don't rise, what else will be cut to feed the NHS beast?  Pensions? Defence? Education?

Then ask yourself when is enough, enough?  When can we clear the socialist claptrap from our ears, eyes and minds and see that this 'envy of the world' isn't the envy but rather, is a service that could easily consume ever larger parts of the national economy and yet not improve its service.

Osborne Statement leaked

Below is the transcript of the Autumn Statement that Chancellor George Osborne is to deliver to the House of Commons on December 3, 2014.  Given its content, we can expect that there will be changes made to water down many of these but see what you think.

Mr Speaker, fellow members of the Conservative Party and members of Parliament from other parties.  Today, following this speech, I will place in the House of Commons Library a copy of this statement and supporting documentation.

The supporting documentation includes a statement from the independent Office of Budget Responsibility (OBR) which comments on my statement.  As the House will know, the OBR was established by this government to act as an independent reviewer of the economic situation within the United Kingdom and of the government's responses to that situation.  Essentially, to ensure that there is independent scrutiny of government budgetary plans so that we avoid the multiple counting of expenditure and unfunded promises, which could not subsequently be kept, that were so prevalent under the previous government.  Also to comment on taxation and policies that would drag Britain further into debt.  The House will recall that Britain's spiraling debt increases were occurring even before the 2008 global economic crisis.

Before I get too far into this statement, I must declare an interest.

It is customary, in such circumstances that the Rt. Hon. Leader of the Opposition, will respond to this statement.  I declare therefore that though I have made a financial contribution to the 'Save Ed' campaign, I do not expect to receive any favours in return for such largesse.  My donation was in excess of the 2p that the Leader of the Opposition recently allegedly gave to a beggar in Manchester, but I consider my £1 money well spent, if it keeps him and the other Ed sitting opposite and continuing to peddle their Micawberish lines about 'needing to borrow ever more because something will turn-up to sort it out'.

I have news for them.  Something did turn up to sort it out.  It is the Conservative Party.

Before I digress too much a final comment regarding the party opposite.  A friend recently reminded me of the line from the film, Love Story and turned it around to make it relevant to Labour and their economic incompetence.  Labour means never having to say sorry, is how it goes!

So Honourable Members, when you read the statement and hear the comments from those opposite, remember that, Labour means never having to say sorry for how they left this country in 2010.  Labour means never having to say sorry for the deficit that they left the country, for the debt mountain that would grow bigger because of the financial black holes and unfunded spending that they left behind.  In fact the only time that Labour have said sorry, is when they left a note at the Treasury saying ' Sorry, there's no money left!'

Before I get to the statement, just a word about our Coalition partners, the Liberal Democrats.   Some members of that party have indicated that they do not support this statement and will vote against any measures arising from it.  My Right Honourable friend the Prime Minister has suggested that any such dissenting members, who hold ministerial office should consider their position and that is what they are now doing.

Thank you for your patience and now to the statement.

The UK economy is well on the way to recovery.  Indeed it is leading the way, in terms of all economic indicators, among the G7.  As with any patient that has had a serious illness, a relapse is possible, though given that the fundamental underlying economic health issues have been identified and the remedies are known, we can expect a full recovery, over time, so long as we stick to the medicine that has brought us back from the brink.

Sticking with this medical theme, the UK economy was obese and suffering as a consequence.  In 2010, the Body Mass Index, or BMI was very unhealthy.  We were funding a financial/calorific intake that was far in excess of our needs and of what was good for us.  We were getting fatter on other people's money.

For the health of the patient, that had to stop!

Over the last 4 1/2 years, we have initiated policies which have begun the slimming down process.  Our economic BMI is still too high but now when we get on the scales we can see improvement and as a nation we know we cannot treat this like some kind of yo-yo diet where we now  backslide and start getting into debt again.  We need to stay the course.

Staying the course is  vital for any healthy diet.  However, a diet needn't be all doom and gloom, not all abstinence and restraint.  Sometime we also need the carrot of a little self-indulgence.

This statement looks to keeping Britain on that healthy diet.  We will slim down the State but will indulge our people along the way.

Firstly, the slimming regime.

In the Budget planned for April 2015, this government will propose removing the so called ring-fence from Education and Health spending.  At a time when all other sectors of the economy are learning that they need to slim down and lose weight, we cannot, as a nation have two vital services that are allowed to gorge while others are on reduced rations.  that is not the British way, that is not the Conservative way.

All government departments, will need to reduce year on year expenditure by 5% in the fiscal year 2015/2016 and a further 5% in each of the succeeding 4 years.

The NHS has been protected from the expenditure reductions that have been required at other government departments but it simply isn't fair that this continues.  I know that the party opposite will scream about the NHS not being safe in Tory hands and so on but the reality is that we are all in this together, we cannot slim-down the body and ignore any large part of that body, we must look at this as a whole.

My colleague the Minister for Health will be advising NHS Trusts on the planned spending budgets  for coming years in a short time.  This advice will include instructions that they should immediately undertake wholesale re-negotiations of all PFI contracts.  And, let us state here and now, we expect these PFI providers to fund the largest part of the reduction in NHS spending.  We will advise NHS Trusts that they will be allowed to go into receivership, bankruptcy, fold or call it what you will but we, the British taxpayer and the Conservative government, will not allow the people to be ripped-off by paying exorbitant fees to private finance organisations.

To be clear on this.  We know that most of these overly generous PFI contracts were signed under previous Labour governments and were considered a 'neat trick' to keep the public finances looking good.  This though isn't about political point scoring.  This party wants to see a healthy NHS not one that is having its very life-blood sucked out by onerous PFI contracts.

To those financiers listening to this, my advice is clear.  Get in touch with your NHS Trust partners and renegotiate the terms of your agreements as a priority.  This issue of overly generous contracts is now on the table and we know we can expect the full support of the 'banker bashing' brigade on the opposite benches, so it isn't going away.

Details on departmental budgets will be placed in the House of Commons Library following their announcement by the respective Ministers but the foregoing outlines the overall direction of where we are heading.

Turning now to taxation.

It will come as no surprise that this party is committed to reducing the tax burden on ordinary people.  The party opposite will bleat about tax cuts for the privileged few and so on, and they may, in their comments,  be yet joined by others.  The reality though, and they absolutely know this, is that government spending isn't funded by the privileged few, by the top earners.  If these people were taxed at 100% it still wouldn't be enough to fund spending.  And that is before we contemplate the huge increases in public spending that will be required to fund the extravagant promises made by the party opposite!  Why they would want to throw away the gains we, as a country, have made in the last 4 1/2 years is simply criminal.  We haven't come through a period of austerity, just so that we can go out on a Labour Party inspired binge!

At the recent Conservative Party conference, we proposed certain measures would be enacted if we were entrusted with power, by the British people, after the May 2015 General Election.  We now believe that we can accelerate some of these proposals.

The April 2015 Budget statement will include proposals to raise the income tax threshold to £12,500 with effect from April 2015 and increase by £500 increments each succeeding fiscal year until it reaches £15,000.  This will lift millions of people out of paying tax, altogether.


The April 2015 Budget statement will include proposals to raise the income tax threshold for the 40% rate from the current level of £41,865 to £45,000 from April 2015 and then by £1,000 increments each succeeding fiscal year until it reaches £50,000.  This will cut the tax bill for millions of so called 'middle earners' .  These people have contributed to putting the UK economy on the road to recovery and it is only right that they should get to keep more of the money that they earn and to be able to spend it as they like, not so that its spending is dictated by some bureaucrat in Westminster or the local town hall.

The April 2015 Budget statement will include proposals to completely lift the burden of so called 'green taxes' from our people and our businesses.  These taxes have crept stealth-like into the fabric of our country and sap the economy.  They force Old-Age Pensioners to sit in unheated homes because they cannot afford to pay high gas or electricity bills which are high because of these taxes that were brought in by the last Labour governments.  These killing taxes must go.

Linked to this, effective midnight, the fuel duty will be reduced by 10p a litre.  I have listened to representatives of the transport industry and of those from rural communities and know that this is the right change to make, to aid our people.

Honourable friends colleagues and Members, these are the headline changes that this Government will be putting before the House.  The full statement, including the comments of the OBR and the current position of the economy will now be placed in the House of Commons Library.

I commend this statement to the House.

Short and sweet for Osborne

Often posts are too long to keep the attention of politicians, so here is a brief pre-Budget message for George Osborne

• Cut the basic rate of income tax and include future planned and timed cuts
• Cut the National Insurance Tax rate for employers and employees for under 25's
• Increase tax thresholds and commit to doing so, progressively for next 5 years
• Cut government spending, across the board - all departments 10% less this coming year and include future planned and timed cuts - less government is better government.
• End the Green Taxes, with immediate effect.
• Tax MPs expenses - treat MPs the same as the people they represent.
• Cut Local Government expenditure or rather the portion provided by Central Government.
• Allow bodies to go bankrupt if they can't afford or re-negotiate PFI

George,
The fuller version is here.   http://bit.ly/VWgyug
 

PFI - Call their bluff

The Private Finance Initiative was a great 'wheeze' dreamt-up to park long term liabilities off of the balance sheet of UK Inc.  You know, the kind of thing that got Enron into trouble and caused UK politicians, of all hues, to rain down criticism on these people.  No hypocrisy there!

 NHS hospitals are under increasing financial pressures and are faced with long term liabilities (PFI contracts) that they simply cannot sustain.  If the NHS was a commercial organisation it would approach it's landlords and seek revised terms - bluntly stating that they can't afford the payments, any longer. 

So why don't they or rather the individual trusts do just this?  What will these finance companies do - sue the NHS trusts?  If the NHS just turned back the property to the funding institution and each trust declared itself bankrupt, what then?  I can't think that there would be anything to stop other organisations immediately (or even in anticipation) setting themselves up as trusts (authorised by the Department of Health) and then offering to make use of these facilities but at reduced rates.

It is only because the PFI companies know that at the end of the day, the UK Taxpayer sits behind and acts as financial guarantor for the NHS Trusts, that they do not adjust their rates. 

So, take away that guarantee. 

I know, some will say 'it is unfair to change contractual terms after signing a contract' but that happens all the time in business.  The majority of these contracts were signed when the UK was living in denial and way beyond its means.  Times have changed.  These contracts need to do likewise.

The smart PFI people will read the writing on the wall and volunteer to reduce rates.

If we can't do the above, then let's tax the gross income from such contracts at a higher rate - say a special levy of 25% might be a good start.