24 Jun

UK’s 10 Desperate Moves to Earn Money

The UK government is definitely struggling to deal with its tough financial situation right now. They have a 155 billion-pound budget deficit that they’re trying to deal with. This is causing them to make some seriously desperate moves to cut spending and save money. Although some of these moves may be a good idea (and some are just plain necessary) the fact that they are driven by desperation should be a warning sign for the government to look carefully at their decisions before moving ahead.

1. 1. High-Speed Rail Link Sale. The UK government hopes to close the gap in their deficit in part by selling the rights to their high-speed rail line. This rail is reported to be worth close to 2 billion pounds which is a lot of money although it’s a small drop in the bucket compared to the total amount of deficit the government is dealing with. The sale could definitely be a good thing but if the rail has the potential to be a real money-maker over the next few decades then selling it now could be a mistake.

2. Cut Aid to China and Russia. The UK government spends over £40m annually on aid to these two countries. They now say that this aid isn’t helping the poorest people in the poorest countries and therefore they plan to change the way that they distribute aid, cutting off the aid to these two places. This may be a financially smart move but whether or not it’s a good move in terms of international relations will depend on how new aid is doled out.

3. Small Reduction in Military Troops in Afghanistan. The problem here isn’t that the country is cutting back on its military troops in Afghanistan but rather than they aren’t doing enough in this area. They’ve only made minimal cutbacks. The war has cost UK tax payers over 20 billion pounds so far and the costs continue. More drastic cutbacks here might actually make more sense here.

4. Retaining Old Military Helicopters. Although the reduction in troop spending has been small, the UK government is trying to cut Department of Defence expenses in other ways. Most notably, they’re suspending investment in upgrades to search-and-rescue helicopters. This does save a lot of money (7 billion pounds) but means that the search-and-rescue equipment being used by the government is outdated compared to what’s available. That’s a risky money-saving endeavor.

5. Forgetting about the Children. Many cuts have been which reduce services for children. These range from getting rid of free school lunches to eliminating free swimming programs. This can have consequences ranging from unhealthy meals for kids to a lack of summer activity options which can increase crime among children. This may save money now but it can cost society in the long run. Learn more.

6. Reducing Police Budgets. One of the ways that the UK government is reducing spending is by cutting the budgets for police forces. The problem here is that crime often goes up during economically tough times. As individuals get desperate, they may engage in more illegal activities for profit. Cutting back on police in such a time has the potential to pose safety risks to the public.

7. Reneg on Nuclear Power Plant Loan. The UK has decided to reneg on a promise of an 80 million-pound loan to Sheffield Forgemasters for development of nuclear power energy. This could definitely be a smart money-saving money. However, it has to be acknowledged that becoming a forerunner in this energy could be highly profitable in the long run and that’s an option that the UK will be missing out on by not offering this loan after all.

8. Stop Helping the Unemployed Find Work. The UK government has scrapped plans to assist the unemployed in the region in finding employment. This may save money for the government but it certainly doesn’t help out the individual people who are suffering as a result of the economic recession.

9. Failure to Build New Hospital. The government is saving a whopping 450 million pounds by deciding not to move forward with building a new hospital in Northern England. This is one of those things that might be a smart financial choice that has to be made during tough times. However, it’s always questionable to sacrifice the health of individuals for the good of government finances. It’s definitely something that deserves a closer look and shouldn’t just be done out of desperation!

10. Unmaintained Roads. One way to cut spending is to stop maintaining the roads that people are driving on in the UK. This has the potential to save hundreds of millions of pounds. Of course, this could lead to problems ranging from increased traffic delays to fatal auto accidents. On the plus side, other actions by the UK government that affect motorists (such as increased fuel costs and increased taxes on vehicles) could encourage auto drivers to give up their cars anyway.

Some of these moves may be smart but that doesn’t mean that the UK government necessarily knows what it’s doing. After all, a lot of their financial trouble comes from their own disgusting, wasteful spending in the past!

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