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Osborne told to communicate more to win support for cuts
The government can secure backing for unpopular spending cuts if it spends more time explaining what it wants to do and why, new research has found.
Markets
Chancellor George Osborne has a huge job ahead if he is to win popular backing for unprecedented government cutbacks, according to a new report.
Only a small minority of people understand why the government needs to cut spending and how that will affect them, while three quarters of people have no idea how the government will decide where the knife should fall, business consultancy PricewaterhouseCoopers has found.
Jon Sibson, a partner at PwC, said: ’The public is hungry for knowledge on the deficit but current communications around the fiscal consolidation have yet to hit the mark.’
Sibson said the experience of other countries overseas has shown that good communication has made it easier for governments to make necessary cuts.
There was some good news for Osborne as he struggles to find ways to cut Britain's £155 billion deficit over the next five years as the study showed that even some of the more difficult decisions can win support if there is a proper discussion about why they are needed.
In addition to the poll, PwC drew results from a ‘Citizens’ Jury’ of 24 people who spent three and half days debating and discussing ideas on areas for savings. The vast majority (79%) initially backed government plans to ring-fence NHS spending from the cuts. But they reversed their views at the end of the debate, with 91% wanting to take the ring-fence off.
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14 comments so far. Why not have your say?
Andrew Gilliat
Aug 10, 2010 at 09:55
I agree entirely that ring-fencing NHS spending is a mistake. Sacred cows get fat and unable to see the wood for the trees. Also, today's society seems to think that it has a divine right to misuse the NHS: un-necessary ambulance call-outs, wasted medicines, costly medical interventions made necessary by our carelessness, and lack of will power and common sense.
report thisJohn Coles
Aug 10, 2010 at 09:58
"".....current communications around the fiscal consolidation have yet to hit the mark""
Well, what do you expect? Osborne has no presence and doesn't seem to understand the first thing about leadership. An expensive education culminated in him gaining a 2nd Class degree in 'Modern History'. I feel, but don't know, that mathematics makes his brain hurt - bit of a drawback for a Chancellor of the Exchequer.
The only thing he has going for him is that he is a chum of Mr Cameron - some commendation.
report thisMr Robert
Aug 10, 2010 at 10:01
Yes and the BBC wants a blooming good rerouting too .That gravy train wants severely de railing!
report thisJon
Aug 10, 2010 at 10:22
The voters need educating on value for money principles. One of the main problems is that whenever cuts are made to an existing budget, there are understandable squeals from those affected, coupled with emotional campaigns. Little if any argument is based on fact.
We have to try to look at what we need to spend, as a country, on essential services first, and base spend on the projected results. Building a new school may create a "nice" environment for pupils, but it is no good if the teaching staff are inadequate, Everyone wants the state to spend money for their benefit without accepting that they have to pay for it. Unfortunately the reckless spending by many has affected many people's understanding of budgetting.
When it comes to the NHS and other life safety spends, then we have to make some decisions based on the grim fact that life has a monetary value. So if, for example, speed cameras save a few lives, but the same spend on new MRI scanners will save more, then speed cameras have to go.
As for the NHS itself, it should not be ring fenced as a pruning of the management is long overdue, There are too many levels of managers such that decisions are slow, difficult and very costly with all of the internal meetings, reports and so on. And many administrative procedures are completely unfit for purpose and so cumbersome they completely defeat their own objectives.
We also need to counter the popular myth that it was the bankers who created this mess, and that therefore they will have to pay for it - not the voters. I see this argument put forward time and time again, which allows huge numbers of the population to deny that there is a problem let alone that they will accept some austerity. Ok, the bankers, coupled with reckless borrowers, made matters worse, but the population must accept that this was just a blip compared with the underlying deficits.
report thisConstance Blackwell
Aug 10, 2010 at 10:30
Osborne has no training for his job - but that is the least of it. No wonder Martin Rees and Paul Nurse of the Royal Society are beside themselves. They are shocked as they should be when they see that Osborne does not distinguish between investing in knowledge and wasting money.
Then there is this wonderful idea that destroying the arts council that invests in the arts with moneys raised by Vat on theatre tickets - - doing the same with the Movie council is saving money.
Now there is an attempt to destroy the Warburg Institute that was saved from the Nazis.
The difference with Germany now is striking, not only did they not destroy their engineering industry - thank you Thatcher - but they have called in young German scholars who had to go abroad because there were not jobs, to come back to reinvigorate East German libraries and institutions -
Some new thinking is needed around what investment means - it should not be limited to a word only referring to stocks and bonds (or a house)
report thisAtheist
Aug 10, 2010 at 11:29
Having read, John Coles and Constance Blackwell.
There is nothing left for me to add.
report thisJohn Coles
Aug 10, 2010 at 13:16
.....but, nonetheless, you did!! God bless you, my son.
report thisagal
Aug 10, 2010 at 14:22
Remove the ring-fence from International Aid first, then move on to the N.H.S. if neccessary.
report thisjingoistic
Aug 10, 2010 at 14:26
The Citizens Jury my a## ( Price Waterhouse) they are all Torys so that is exactly what you would expect them to be saying.
report thisRon C
Aug 10, 2010 at 16:26
Ring fence the money to be spent, that is all he has done.The cost of redundencies,altering the system of management transfering responsabilities will be huge,and about time.
report thisDavid Evershed
Aug 10, 2010 at 16:28
My understanding is that NHS cuts are going ahead but that the savings are re-invested back into the health service. So overall, NHS spending will not go down.
report thisDavid Evershed
Aug 10, 2010 at 16:32
The alternative to spending cuts is higher tax.
Keeping tax lower than it would otherwise be is a kind of investment in the businesses and people who would otherwise be paying this extra tax.
So spending cuts are an investment too!
report thisMartyn
Aug 10, 2010 at 21:14
John Coles says "Osborne has no presence and doesn't seem to understand the first thing about leadership. An expensive education culminated in him gaining a 2nd Class degree in 'Modern History'."
So that is why we have Media Studies degrees!
report thisJon
Aug 10, 2010 at 23:14
So jingoistis - you do not like what you read so you stay in denial by claiming that PWC are all Tories !!! They made a shed load of cash on consultancy work from the last Government - something they will miss now !! So can you give us your evidence for your claim ?
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