Wednesday, 6 March 2013

One way the government can cut government spending at a stroke.

Put a legal maximum limit, let’s say of £80,000 (or tie it to the PM’s salary), that can be paid as salary to any one person who is paid directly or indirectly out of taxation. That’s all civil servants, education chiefs, police chiefs, NHS managers, defense staff, social services chiefs, council employees, government agency workers, quango members, and to include anyone working for any organisation that directly or indirectly accepts grants or funding from government taxpayers or council ‘ratepayers’ money. Nobody gets more than £80,000 per year salary from the taxpayer no matter what their job or who they are.

Anyone affected would have a choice of accepting redundancy – payments to be capped at minimum legal levels based on weeks’ salary per year worked in the post. – or of continuing the job at the new lower salary. Agencies and fake charities would have a choice, keep paying the boss or lose the grants. 

That sounds harsh, and somewhat left wing perhaps, but hard times mean drastic remedies and the pay gap between the top and bottom of public servants is more out of control than banker’s bonuses. 

No doubt plenty of well paid people would squeal, but in reality it’s considerably less harsh overall than the present method of cost saving in our public services, which leaves the well paid management level employees untouched or given golden handshakes to a revolving door next job, yet makes large numbers of low paid front line workers redundant with minimal generosity and leaves important front line public services understaffed and in crisis. 

Anyone can survive to a very good level of comfort on £80,000 per year, certainly they will be much better off than an ordinary £20,000 a year employee when thrown onto the dole, and that’s the alternative, every salary reduction at the top would save one or two lower paid jobs.

Every £100,000 person who chose redundancy would save up to 5 lower level employee jobs. That helps keep front line services running and restricts the jobless total to an increase of one rather than five, all of whome would need to be paid benefits.

There are plenty of intelligent, sensible and capable people who would be more than happy to work for £80,000 per year to fill the vacancies created by those who resigned rather than take a cut.

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