The case for Cuts!

Here at Momentum Coach Hire we think we run a pretty tight ship – our entire cost base amounts to less than 15% of sales.

Nonetheless – after the summer peak – we always have a little look at our spending in all areas and check we are getting value for money.

This summer we have reduced our telecoms cost by 15% pruned our advertising budget and got back to better cost control in stationary and office consumables. In addition we have looked at Director expenses and a couple of HR issues!

Overall we have reduced our costs in this process by about 5% – from a pretty low starting point!

Was this fun? No

Was there some difficult conversations ? Yes

So it increasingly drives me to distraction that on my drive home on an evening i have to listen to the public whinging of the various interest groups against government attempts to reduce the deficit. If Momentum can reduce costs by 5% in one month then surely our bloated government can reduce spending levels by 10% over 5 years. This would of course take us back to Government spending levels of the Dickensian dark ages of – errrr – 2005!

For the Keynesians out there who argue that an excessively hasty reduction in the deficit will allow the ‘double dip’ wolf to kick down the door they miss the point of the waste which goes on in our state run services. You could argue for a higher deficit (to maintain the fiscal stimulus) – with lower public spending – whereby instead of reducing borrowing and you could reduce taxes to keep consumption up to support growth.

Cuts should start with all these PR, Spin and waffling politicos – reducing simultaneously – the deficit and my headaches!

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