Britain Leads the Way on Spending Cuts

Thursday, 05 May 2011 09:14 AM

By Ronald Kessler

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Brits shrieked with joy over the wedding of Prince William and Kate Middleton. But they have even more reason to be proud of the spending cuts their government has initiated.

As President Barack Obama spends America into the poor house, Great Britain has been cutting costs in government departments by an average of 19 percent.

At the same time, it has sharply curtailed welfare benefits, raised the retirement age to 66 by 2020, and eliminated close to 500,000 government jobs to reduce the deficit.

Besides cutting, the government led by the Conservative Party is providing incentives to those on welfare to obtain jobs.

Britain,spending cuts,Prince William,Kate Middleton,Conservative,Obama,welfare,retirement age,House of Commons,Labor Party
Britain's House of Commons
“We are making it always better for somebody to work than to be on benefits,” Penny Mordaunt, a conservative member of the House of Commons from Portsmouth North, tells Newsmax. “Before, a single mom who might want to go into a part-time job to help her get off of benefits was penalized. We’re reforming all of that.”

Great Britain also is cutting local government budgets funded by the national government by 36 percent.

“We’ve incentivized local councils so that if they make savings, we will match their savings, enabling them to hold council tax down,” Mordaunt says.

“We are looking at ways in which we can stimulate growth by creating enterprise zones, and we’re cutting the corporation tax by an additional 3 percent to a rate of 26 percent.”

At the same time, “We’re massively expanding volunteer programs,” Mordaunt says. “We’re helping certain enterprises set up and start to provide services to local communities.”

While massive protests have erupted over reduced government benefits, “I think that we got a good mandate from the population to do what is necessary to cut spending,” Mordaunt says. “We also need to get the absolute maximum out of what we are spending.”

Predictably, the Labor Party, which was kicked out by voters last year after 13 years in power, has called the cuts draconian. But the lesson for the United States is clear.

“People shouldn't be afraid to do this,” Mordaunt says. “We’re doing it in the U.K. It’s tough. We have to make difficult decisions every day, but we just always need to keep focus on what the end goal is and work on new ways of getting there.”

Ronald Kessler is chief Washington correspondent of Newsmax.com. View his previous reports and get his dispatches sent to you free via e-mail. Go here now.





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