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So by winning Tory cheers today, Hammond has given May a dilemma by displaying more political nous than his Tory critics believed he had. It will be yet another difficult decision for the Prime Minister. You can find our Community Guidelines in full here. Want to discuss real-world problems, be involved in the most engaging discussions and hear from the journalists? Try Independent Minds free for 1 month. Independent Minds Comments can be posted by members of our membership scheme, Independent Minds.

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'There is no money left'

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The Austerity Agenda - The New York Times

Voucher Codes. Minds Articles. Subscription offers. Subscription sign in. Read latest edition. UK Edition. Washington, D. IAC Chairman Barry Diller said that Netflix has such a large head start that competing streaming services won't be able to catch up. George Osborne, the U.

Former foreign secretary Philip Hammond takes over. Like May, he has been roundly and is known for his cool demeanor. There had been some speculation that Osborne could take up the role of foreign secretary but that position went to former London Mayor Boris Johnson, leaving Osborne out in the cold. Osborne tweeted his congratulations to the new prime minister and chancellor and wished them luck, adding that he hoped his successor had not inherited an economy in crisis.

Osborne was first appointed to the role of chancellor in when the economic crisis was in full swing and, infamously, the then chief secretary to the Treasury David Laws remarked that his Labour predecessor had left a note in the Treasury on departing office that read, "I'm afraid there is no money. Soon after the coalition government between the Conservatives and Liberal Democrats came to power in May , Osborne quickly made tackling the government's budget deficit and national debt his priority with a mixture of tax rises to VAT and capital gains tax and spending cuts.

The latter were to feature much more prominently, however, with 77 percent of the total consolidation to be achieved through spending reductions and 23 percent through tax increases, Osborne said. Announcing an emergency budget in June , a normal procedure when a new government is elected, Osborne spoke of the "emergency" the economy faced. He said he was not going to "hide hard choices from the British people" — setting the stage for six years of austerity measures in a bid to "balance the books. One pound in every four we spend is being borrowed.

What we have not inherited from our predecessors is a credible plan to reduce their record deficit-this at the very moment when fear about the sustainability of sovereign debt is the greatest risk to the recovery of European economies," he said.

Redefining necessities

A new, balanced economy, where we save, invest and export; an economy where the state does not take almost half of all our national income, crowding out private endeavor," Osborne said. Looking across to the continent in , the euro zone was also in crisis mode. Osborne said that the single currency area was a stark reminder to the U.

What is more, the forecast shows a gradual rebalancing of the economy, with business investment and exports playing a greater role and government spending and debt-fuelled consumption a smaller role," Osborne noted.


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  6. Needless to say, his announcements of widespread spending cuts were not universally welcomed, especially by those dependent on the U. Public sector workers were also up in arms when told they faced a two-year pay freeze. Osborne tried to stimulate business activity by cutting corporation tax, however. With such measures, Osborne predicted back in that the U. Many people in the U. Economists also expressed concerns over the U.

    Not-so-free parties

    There was also growing discontent that Osborne's fixation of achieving a budget surplus with more extensive cuts and tax rises could be tantamount to a pyrrhic victory for the U. If your finances are out of control, the best possible reality check is a stark look at what necessities really are. It is not necessary to life to have an iPhone, a vehicle in both stalls of your two-car garage, or for your children to all have separate bedrooms.

    Some are more important than others, based on your lifestyle and might be considered secondary necessities. You might require transportation, work clothing, a computer and an internet connection, electrical appliances, a cell phone — you are the only person who can define which are these are luxuries and which are secondary necessities.

    For example, I am a freelance writer who lives in a remote area. Without an internet connection and a laptop, I have no work. For me to make a living, therefore, my computer and monthly internet bill are a necessity. However, because I work from home, a fashionable work wardrobe is not important to me. If you have to go out to a job in customer service, for example, then perhaps a computer and internet connection would be less important than a good-looking career wardrobe. A couple of years ago, I began to see the writing on the wall for my own personal finances.

    I began to cut expenses as quickly as possible. Although these changes were not incredibly popular with the kiddos, I made them ruthlessly. I made the following adjustments:. These efforts paid off within a few months, because my prediction was right — I got downsized. Had my expenses been at their former level, we would have struggled to keep the electricity on and food in the cupboards. When I lost my job, I began looking for ways to make money from home.

    So, I began a search for a less expensive place to live. The beauty of what I do for a living is that I can live anywhere — I only require a reliable connection to the internet. I realize that the changes I made are not changes that will work for everybody. Adjusting your own situation requires a brutal analysis of your expenditures. Kids, however, have to deal with it — expect loud complaints but be firm. Print off your bank account statements for the past 2 months. On a piece of paper, track where your money is going. List the following. You are averaging together two months, which should account for those less common expenses.