Tories in benefits pledge

Tuesday 6th October 2009, 2:50PM BST.

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The Tories today pledged “radical” but “compassionate” reforms to public services and benefits – including raising the state retirement age by a year to 66 – to plug the black hole in Britain’s finances.

Shadow chancellor George Osborne said the measures would save more than £7 billion a year in government spending by the end of the next Parliament, or £23 billion in total.

The change to the state pension age, saving £13 billion a year from 2016, would come within seven years under a Tory government if the party wins the next general election.

This is 10 years earlier than planned by the present Labour Government.

Women could also have to work to the age of 66, an extra three years.

The money would be used to link the basic state pension to earnings as opposed to the prices of goods.

By London Reporter Sunita Patel


  1. 1
    Dope & Tory

    George Osborne wants to freeze the pay of all civil servants earning more than £18,000 — while he continues to claim £22,800 every year for mortgage interest over and above his salary!

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  2. 2
    Peter

    Interesting that despite ‘smiley’ Dave Cameron having a more acceptable public face, at the heart of the party’s policies are the same old ‘starve the poor, feed the rich’ policies of the 1980s.

    Let’s not forget that the current recession was caused by the greed of the rich, and irresponsible bankers, yet here we have Bullingham club George Osborne having the gall to tell us ‘We’re all in this together chaps!’

    Really George? Were we all in it together when the big bonuses were being paid out? Are the Senior execs of big companies going to be subject to the same pay freeze that many low-paid public sector workers, and policemen, firemen, and NHS staff will be subject to?

    We have a token statement that the Tories ‘might’ tax large bonuses, but absolutely no indication that they will swell the Exchequer’s coffers by closing the sort of tax loopholes that allow hedge fund managers to pay less tax than their cleaners.

    Instead their only commitments are to reduce inheritance tax (in effect a tax rebate for dead millionaires), to reduce corporation tax (more bonus for the boys!), and now to reduce NI contributions for new employers (doubtless encouraging those who wish to make a fast buck out of providing a few minimum wage jobs).

    It’s quite clear who they represent – nothing has changed since the days of their huge tax cuts for the rich.

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  3. 3
    eva land

    Are those all George Osborne’s rented properies he is advertising behind him?

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  4. 4
    Peter

    Once again the Tories have pinpointed society’s problem; sick people and overpaid nurses. Not bankers and stock exchange profiteers (who fund them, of course). Oh no.

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  5. 5
    a

    18 k is not a lot of money, its below the national average wage these days, all teachers, soldiers, police and nurses and even this will catch out bin men and ambulance drivers, its too low a threshold i think

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  6. 6
    Jayne Oliver

    What about boy George’s pay being frozen? What about his expensive expenses being frozen?

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  7. 7
    Stuart

    Yes, the usual rubbish from the blue collar brigade. Perhaps our usual Marxist Peter can say what “poor” people are going to suffer from his announcements yesterday. None whatsoever. The Nurses, (my daughter is one) are on a three yearly agreement together with Police and other essential services which will not be affected.
    Many in the private sector under a LABOUR government have been forced to accept pay freezes, pay cuts, reduced hours of working etc. Why should they have to accept this without the public sector also catching a cold. But I think you must be an ex or current Public Sector worker Peter. Cuts are alright and made for everyone else except for me type.
    The poor, have specifically been left out of these cuts unless you class the £50,000 a year types as “poor”, your predujiced, unintelligent and class war thinking would allow to believe anything and say anything and, as it is, the comments above, indicates Labourite supporters to a “T”.
    Dope (yes to true) and Tory, what about all the Labourites with their claims for mortgage interest paid for by us the taxpayer and Darling (yes he is also one) just about to announce the kick in of extra National Insurance for everyone. A fairly unintelligent and class ridden comment.
    Evaland, another green with envy, poor, oppressed Labourite, do you want me to list all the Labour Ministers and MPs with property portfolios, it would fill this paper.
    And another little comment Peter, where do “sick people” come into this issue. Nowhere except in your fevered imagination.
    Osborne has had the courage to spell it out before the election, we know where we stand, Now we wait for the lies, the deceit, the trickery, smoke and mirrors of Brown and Darling to come AFTER, the election because they lack the spine, the courage and honesty to tell us before. I would’nt admit that I supported Labour for fear people would not regard me as intelligent.
    As George Osborne say’s, WE ARE ALL IN THIS TOGETHER, even the Lord Mandelsons and similar in the Labour Party and his property holdings – you forgot to mention him evaland.

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  8. 8
    andrew finch

    Did i hear it on news at 10 last night when ozi said he would stop tax credits to people on 50k a year????. Well if under labour people on over 50k have been given tax credits then labour deserve to lose. Saying all that i know selfemployed people such as farmers etc who play the system very well and get more tax credits than the so called low paid and they own the farms and rent out property. They just have good accountants.

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  9. 9
    Stuart

    Yes, you heard exactly that andrew and I have just heard on the 1.0pm news that British Airways
    workers have just been told that they are going to have a TWO YEAR wages freeze with some 1,700 losing their jobs altogether. With all the others in the private sector recognising that it is either jobs and/or wage freezes, Osborne has brought the public sector into the land of reality albeit I agree with “a”, £18,000 is to low, £20,000 or even £22,000 would have been more correct. The Public Services have expanded by over 800,000 under this Labour Government, if they don’t want a 12 month wage freeze then great, let them lose 100,000 jobs to redundancy – because this is what it will mean. The choice is stark, a 12 month wage freeze or 100,000 Civil Service and Council Workers sacked.
    As for Jayne Oliver another one of the bright band, why don’t you think of Darling’s salary and expences when he brought in the tax increases for the poorest paid in our society only 2 years ago. If that is the best comment that you can make it’s a pity.
    What Osborne said yesterday goes some way to mending our broken finances caused not only by the banks as Marxist Peter would have us believe but primarly by Brown. Just in case you didn’t realise it commentators above we were on the point of bankruptcy before last April, what did Brown then do, why, he “printed” £175 BILLION of unearned money to get him through to the election and to make everyone continue to think that he is a “nice boy”. He is the guy who sold our gold reserves at rock bottom prices – what we couldn’t do with that lot now but it’s all gone due to his irresponsible profligacy.
    As Cameron has said, we are in a worse position now than when Dennis Healey (another Labour Chancellor) bankrupted the country all those years ago and had to go cap in hand to the International Monetary Fund (IMF) to prop our country up. Unless something radical is done the IMF will step in as they are entitled to and they will lay down the economic policies that we must follow in order to get us out of this unholy mess that Blair, Brown and Darling have created.
    What Osborne would do is small beer to what we can expect if the IMF do have to step in.
    Let’s wait for the Darlings budget shall we, then we will see who is the nasty party.

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  10. 10
    Peter

    Stuart,

    Firstly, the second comment from ‘Peter’ was not from me, so I can’t be held responsible for it.

    Secondly, I think most of the readers will be baffled by your ridiculous description of me as a ‘Marxist’ – your knowledge of political philosophy must be lacking, or your political compass somewhat off-beam.

    If it is ‘Marxist’ to identify the people responsible for our current plight, and to wish for them to be penalised for their greed, if it is ‘Marxist’ to not want to see the low-paid hit with lower pay, whilst the rich have their taxes cut, as proposed by Osborne, then sign me up!

    Thirdly, your attempt to feel reassured by the presence of 3-year agreements for some public servants is probably not safe. Osborne indicated that he may not honour these, and the public sector unions are already preparing to have to fight to keep them in place. I wish your daughter all the luck in the world in getting her pay increases maintained, but they are certainly at risk from Osborne.
    It actually won’t help the economy to freeze public sector pay – after all public servants spend money and pay taxes too.

    As you well know, i used to be a public servant – just as you did, but I haven’t worked in the public sector for well over a decade. In the end the pay in the private sector has ended up better, despite what you might read in the Daily Mail…

    As for the idea that ‘we are all in this together’ – certainly we all have to deal with the consequences, but we are categorically not all responsible. We have taken ownership, out of necessity, of several banks into public hands. These banks will continue to make healthy profits whilst in public ownership, and that is where we should look to take payment from to service the Nation’s debt.

    Osborne will want to return the banks to his friends in the private sector as soon as he can, leaving the rest of us to pick up the tab for their irresponsibility. We must ensure that they are kept in public ownership until all these debts are paid back.

    Andrew, I believe the ceiling for Children’s Tax Credit is around about £58k combined financial income for a family. In order to get any money, (effectively relief on tax paid on some of that income) they would have to have significant childcare expenses too, so you needn’t worry, little money is being spent on the reasonably well-off. Most tax credit money goes on keeping the low-paid in work – far better than having them on the dole.

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  11. 11
    Stuart

    Peter, I will stick to my belief of you being a Marxist, admit it man, don’t be ashamed of it, you can no more hide it than I can hide my being a Tory.
    Now, where did you hear Osborne say that he wouldn’t hold to 3 year agreements – you didn’t. He was specifically asked by Andrew Neil about Nurses, Police Officers and Teachers, he replied, “those won’t be affected, they are subject to 3 year agreements”. He did not say that they would be broken. Though when we look at Jacqui Smith (Labour Home Secretary) breaking the arbitration agreement with the Police after she ordered arbitration, you can hardly blame the Tories for following a precedent set by Labour if they did the same (which they won’t). Or, following your logic you may do so.
    What taxes have been cut for the “rich”, I only heard the word “tax” mentioned twice in the speech, once in relation to bank bonuses and once in relation to inheritance tax – which, if you remember, your friends the Labourites raised from £250,000 to (joint) £600,000, so again Peter, another little porky or distortion as is your trademark.
    Yes, I used to be in the Overseas Civil Service and the Home Civil Service on “approved employment” pensionable terms. The difference in salaries between the public and private sectors is hardly that of a fag packet between them but for some of the higher middle and upper grades in the public services, their salary ranges are a disgrace by any standards in comparison with the private sector. The last 15 years have seen an explosion in the salaries of the upper public service grades and not only the salaries, their pensions to (were non contributory in the Civil Service)are also “mouth watering”.
    The private sector are catching it really rough now and there is an air of despondency over many private firms and business’s – indeed with many in the private sector, the perks, salary ranges and pensions in the public sector is a very sore point. Reality has caught up with those in the public services and even if Cameron doesn’t get in, their plum roles have been identified and if we are to live in a fair society which you say is your mantra, they must be made to pay their way the same as those in the private side.
    The rest of your comment is just opinion, distortion or the typical desperate remarks of a Labourite when on unfirm ground, so I won’t respond to them.

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  12. 12
    AJ

    same old tories, they dont have a clue, the public sector is what is supporting the economy keeping people in jobs, why should hard working civil servants who serve the people suffer for the “socially useless” bankers who crashed our economy, the simple answer to the defecit is too slowly over time pay it back through economic growth, alot of that will depend on public sector steering investment, offering grants to businesses, offering services to the community, repairing the roads, maintaining peoples health, keeping them in work, yet Osbourne seeks to abolish Regional Economic Growth Agencies – he hasnt a clue and he is harsh enough to not care about important British services like the post office, the NHS and local councils street sweepers etc

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  13. 13
    dee

    compassionate conservatism – like george bush claimed too = nonesense, the torys dont know compassion, they just dont care about anyone but their own millionaire fox hunting champagne drinking chums in the countryside

    yet the real people of britain live in the city and most earn less than their 18 k p a tax / pay freeze and will never inherit a million pound house like george osbourne will

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  14. 14
    Peter

    Stuart,

    I wish the trade unions shared your optimism that Osborne will preserve the current 3 year pay deals.

    As for taxes, the Tories have already stated their intention to cut Corporation Tax, to reduce employer’s NI contributions, and to raise the threshold for inheritance tax.

    Do you really believe that they will allow the minimum wage to keep pace with inflation?

    Do you believe that they will retain Labour’s increase in the top tax rate for long? (Surely anything that prompts that talentless Tracey Emin to say she’ll leave the country if worth voting Labour for on its own! Perhaps Phil Collins will keep his earlier promise and go too!)

    You’re clearly content to vote to allow the rich to get off scot-free – let’s not forget that there’s no pay freeze promised for the senior executives of large companies – they’ll carry on awarding themselves double-digit pay increases while cutting jobs. I doubt if many others will be so easily persuaded to show such philanthropy towards the wealthy.

    It also seems that your understanding of the political spectrum is so limited that you dismiss anyone who is not a dyed-in-the-wool fully signed-up Mail-reading Tory as a Marxist! I would seriously suggest that you read up on the history of 20th-Century politics, to understand what you are really saying.

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  15. 15
    Qwerty

    18 grand – since when is that a bloated fat cat salary ?

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  16. 16
    H. St. John Peasbody

    The public sector deserves a hammering. Exorbitant salary rises over the last 12 years see nurses earning £35k plus! How absurd! A nurse should be paid no more than £20k for a 37.5 hour week. As for these “essential services” that Labour loves – compare them to the private sector and what’s really happening in the economy. Good on you, George Osbourne.

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  17. 17
    Stuart

    Peter, when we can deal in facts rather than silly conjecture, guesswork, opinion and blind ill-founded prejudice then I will continue to argue the point but when we are into comments such as Tracey Emin, Phill Collins and the like then count me out – why not mention that couple Fry and his other side-kick into (his name is to insignificant but he is a big shot in the celebrity Labourite cabal) the bargain and give your arguments balance. Again, you see you fail to acknowledge that it was the Labour gang who first raised Inheritance Tax to £600,000 being selective again to suit your sill baseless arguments.
    My understanding of the political spectrum will hold with yours in every detail. When someone limits their arguments and personal position from a class based, extreme socialist, envious and hatred of the successful classes then to me that person is a Marxist, forget any issues based on economics such as capitalism etc etc. You possibly don’t know what an extreme socialist is – you are one.
    As for AJ, he/she is possibly one of the results of Browns education system. This is the height of that comment:-

    “he hasnt a clue and he is harsh enough to not care about important British services like the post office, the NHS and local councils street sweepers etc”.

    I suggest AJ you ask Brown about closing Post Offices (what has that got to do with Osborne), who is in power right now when the PO workers are up in arms threatening a national strike, when you are at it ask him about the 13000 nurses in the NHS he made redundant in 2007. As for street cleaners, well now, I ask you. You obviously are in need of a little of Gove’s new type schools, clearly Brown’s has failed.

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  18. 18
    askeric dotcom

    You know ..

    Really – isn’t it about time we broke free from this ridiculous see-sawing between Labour and Conservative governments that’s been going on for the last 50 odd years to my living knowledge (and much longer of course).

    I’m tired of hearing the “same old” arguments going on between them “again” – and – it seems to me they’ve more or less morphed into the same “colour” anyhow.

    It seems obvious to me that whoever gets into power next year (if we follow the same see-saw action)- only the usual sector of society will suffer.

    It really is a disgraceful mess we seem to have got into – and I really don’t see how it will get any better unless there is a drastic change in the way government works.

    As I’ve said before – if I were young again – I’d be off – as far away as possible!

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  19. 19
    confused

    Askeric, apart from yout “id be off” do you have any actual opinions on how our country can be improved ?

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  20. 20
    Grey

    Peasbody,
    My mother is a nurse, she works with the mentally ill. She earns far less than than 35k and works far more than a 37.5 hour week. Yet she will be hit hard by pay freezes. If you ask me its a deeply unpleasant job, I wouldn’t do it for twice her salary but she shows extreme dedication. Unless you know the intimate details of what her job requires I’d suggest you keep your opinions of what nurses should earn to yourself.

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  21. 21
    Stuart

    askeric dotcom, you said:-

    It really is a disgraceful mess we seem to have got into – and I really don’t see how it will get any better unless there is a drastic change in the way government works.

    As I’ve said before – if I were young again – I’d be off – as far away as possible!

    Basically I agree with you 100%. We call ourselves a democracy, it is a two party dictatorship and the successful party depends on the almighty state and clangers that the others have caused during their time before them. We really have no choice unless we wish to vote in idiots or extremists.

    Grey, my daughter is a nurse, she, as your mother is, is on a 3 yearly salary agreement which will not be affected by any pay freeze. She should not worry in this regard. My daughter has risen up a few grades though and even if there was a 12 month freeze she could withstand it – as could most nurses.
    Like Peasbody, I don’t wish to hear any moans from the Public Sector, they have prospered very well since Labour came to power. Just get the salary ranges of some of the middle and senior civilian grades in West Mercia Police and see what a pigs back they are on. These salary grades cut across the whole of the Civil and Public Services from Council workers to those in the NHS and Government Departments. The clerks and admin grades get a pittance and they have been protected by Osbourne – quite rightly, but I shed no tears for most of the Public Service grades.
    Just think how those workers in the private sector feel when their hours are cut, their wages are cut or frozen or (unlike the public services), they are sacked or declared redundant. They justifiably feel “put out”, as I would and would any other normal person.
    I bet the workers at British Airways are now feeling a little envious of those in the Public Services, they are confronted with a requirement for a 2 YEAR WAGE FREEZE.
    As Osbourne said, “we are all in this together”. Yes, indeed we are and that includes those in the Public Services.

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  22. 22
    Tory Boy

    i cant wait, god save the queen, bye bye brown, hello lower taxes and a better britain with less benefits scroungers, illegal immigrants and eu rules, god bless the uk, god save the queen

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  23. 23
    Capt Chaos

    Both my wife and myself are 54 years old worked continuously since leaving school always paid our taxes etc. financed our kids through Uni and never claimed anything except family allowance! and now the Tories want us to work longer to pay off the greedy bankers debts! sorry DC but we were not born with silver spoons in our mouths!

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  24. 24
    Stuart

    You need to get “with it” Capt Chaos. Brown and his lot first started the increasing the pension age issue. So don’t let’s have any silly comments about silver spoons and greedy bankers. You will be helping to pay the almost £180 Billion that Brown has printed this year alone and all the other astronomic “borrowings” that he has made (and bankrupted our country into the bargain) over the past twelve years. You will also no doubt be first in the line to pick up your increased old age pension which the Tories intend to bring in.
    The rise based on average earning for the old age pension will eventually more than make up for the increase in the pension age.
    Thank your lucky stars that there is an alternative to Brown and his gang albeit from the sound of things, it is Labour irrespective of how they ruin the country.

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  25. 25
    Stuart

    And, I should add, even if you bring Brown in again, the pension age will still increase under Labour, Cameron is merely bringing Brown’s intention forward a few years. Whichever way it goes, at 54, Tory, Labour or any other party, resign yourself to working (if you wish to) until 66 when the OAP pension is due.

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  26. 26
    Peter

    Stuart,

    Since you and the Tories seem to have found the relationship between the bankers’ actions and their responsibilities hard to grasp, please allow me to help with a small analogy.

    If you or I were to go to a bank, and to borrow money, we would be expected to repay, with interest, all of that money. I have no problem with that – it’s not a Marxist thing, it’s a Capitalist thing, as I think you’ll agree. Now, I don’t think that the banks would say to us part way through our repayment schedule; ‘Tell you what, you’ve paid off enough – we’ll let you off the rest and get tha money back from all of our other customers who didn’t borrow anything’ – do you?

    We now have an enormous debt, caused by us having to lend the banks money to stay in business. Following exactly the principle above, we should expect the banks we bailed out to remain in public ownership until all of their debt is paid, with interest. That sounds like a Capitalist principle to adopt to me.

    But do you really believe that Osborne will wait until that point before he gives the banks back to his City banker friends? He’s already indicated in his speech that he regards the rest of us, and especially public sector workers, as responsible for clearing that debt.

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  27. 27
    Andrew

    Like Bliar, Clown and Darth Mandy said

    ‘Things can only get better’

    Thank Gordon for the end to boom & bust!!!

    Deluded by the Labour spin

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  28. 28
    Stuart

    What you can’t grasp Peter is the fact that by taking regulation from the B of E and giving it to the emasculated FSA, Blair and Brown allowed the banks to run riot. They and their “soft” approach to banking principles caused this crisis, this, taken with the fact that two years after Labour gained power, Blair and Brown themselves ran riot throwing “borrowed” money at everything, they again more than anyone or anything caused this crisis. Then again taken with the fact that instead of borrowed money, they sold off our gold reserves whilst prices were at rock bottom and used the income for throwing at the public services without any improvement, we have the total culpability and responsibility for the fact that we are almost one step from bankruptcy.
    Nothing was saved for the proverbial “rainy day”, we had nothing to fall back on, our gold stocks had been given away and the B of E was bare.
    I am not an idiot Peter, please, don’t be like this lot in Westminster, take me and millions of other people with an ounce of commonsense as one.
    No, public sector workers are not responsible for clearing the debt – albeit three quarters of the “borrowed” money was thrown at them, they, like the private sector has had to tighten their belts, will also have to tighten theirs. The difference between Labour and Tory is the lies, deceit, spin, deviousness and profligacy of Labour and the honesty, openess, inclusiveness and “we are all in this together approach” of the Tories. What a difference 12 years of Labour and apart from borrowing more money or printing it by the day, they have put no solutions forward except a pay freeze for the highest paid Civil Servants, the rest is to come AFTER the election. Compare that with the Tories who are not even in power and could well lose it by being honest with the people.
    If the Tories lose because of it, they can hold their heads high with self respect and principles intact. If Labour wins, they win because they are liars and take us for fools and those who voted for them fell for it. Well, I won’t but you will.

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  29. 29
    capt chaos

    Peter you are wasting your time trying to make Stuart see sense he is a blind Tory follower poor man!

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  30. 30
    winja

    A list of Labour’s achievements:

    - £22,500 of debt for every child born in Britain
    - 111 tax rises from a government that promised no tax rises at all
    - The longest national tax code in the world
    - 100,000 million pounds drained from British pension funds
    - Gun crime up by 57%
    - Violent crime up 70%
    - The highest proportion of children living in workless households anywhere in Europe
    - The number of pensioners living in poverty up by 100,000
    - The lowest level of social mobility in the developed world
    - The only G7 country with no growth this year
    - One in six young people neither earning nor learning
    - 5 million people on out-of –work benefits
    - Missing the target of halving child poverty
    - Ending up with child poverty rising in each of the last three years instead
    - Cancer survival rates among the worst in Europe
    - Hospital-acquired infections killing nearly three times as many people as are killed on the roads
    - Falling from 4th to 13th in the world competitiveness league
    - Falling from 8th to 24th in the world education rankings in maths
    - Falling from 7th to 17th in the rankings in literacy
    - The police spending more time on paperwork than on the beat
    - Fatal stabbings at an all-time high
    - Prisoners released without serving their sentences
    - Foreign prisoners released and never deported
    - 7 million people without an NHS dentist
    - Small business taxes going up
    - Business taxes raised from among the lowest to among the highest in Europe
    - Tax rises for working people set for after the election
    - The 10p tax rate abolished
    - And the ludicrous promise to have ended boom and bust
    - Our gold reserves sold for a quarter of their worth
    - Our armed forces overstretched and under-supplied
    - Profitable post offices closed against their will
    - The relentless march of the nanny-state and big-brother surveillance
    - One of the highest rates of family breakdown in Europe
    - The ‘Golden Rule’ on borrowing abandoned when it didn’t fit
    - Police inspectors in 10,Downing Street
    - Dossiers that were dodgy
    - Mandelson resigning the first time
    - Mandelson resigning the second time
    - Mandelson coming back for a third time
    - Bad news buried
    - Personal details lost
    - An election bottled
    - A referendum denied

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  31. 31
    eva land

    I intensely dislike people making assumptions as to my political leanings just because I do not have any respect for the Tory party.

    Stuart appears to be someone who is quick to jump to conclusions and easy to groom to be a member of the Tory Party. I understand members of this party are now are featuring on page three of the Sun newspaper in their natural form.

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  32. 32
    Stuart

    evaland, the sort of comment, typical of Labour “sheep” who are now trying to hide the fact and use smoke and mirrors to camouflage their adherence to a discredited, worn out and deceitful party. You convince nobody least of all me. So, bully for you, you dislike me, I am sorry but that is an understatement as to what I feel for Labourites. They have brought this country to it’s knees. The last thing that I have for them is respect.
    The last I heard was that the Labourites take the Sun because they buy it to look at the pictures, the words are a bit beyond them.

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  33. 33
    Liz

    Perhaps someone on here could help explain this to me.

    I understand from George Osbourne’s potential budget that under a Conservative government my Old Age Pension will be changed and linked to earnings rather than prices. However in the same statement he says wages in the public sector will be frozen.

    According to people on here who appear to understand the private sector – wages are also dropping or frozen in the private sector. However as someone who buys food and clothes, pays gas/electricity bills, pays council tax etc etc all these areas of my outgoings appear to still be rising.

    So doesn’t this indicate that my Old Age Pension will be dropped or frozen while prices keep rising.

    If so wouldn’t it be fairer to leave the Old Age Pension linked to prices?

    Please Peter and Stuart please do not be unpleasant to each other or me because I ask a question that is confusing me.

    Thank you

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