The Cost Cutting Starts Here - Bring It On!

Here's the latest from our Highly Placed Professional.

You could be forgiven for doing a double take this week, as all the cynics and naysayers changed their tune and told us that the UK's Liberal Democrat / Conservative coalition would be a great thing after all. Of course, there's good form here because the Lib Dems and Cons are now, somewhat surprisingly for former implacable foes, really convinced of it themselves. As for me, though, I see this new coalition as a kind of Government of National Emergency. It was as necessary as it was inevitable, given our current national debt crisis.

It really struck me in the immediate aftermath of the election, as politicians and commentators jostled for airtime and advantage, just how many of them referred to the dreaded 'd' word - deficit. It's like the gloves have finally come off and the schoolyard bully is in the room. The new Cabinet members referred to the deficit in many of their interviews, and there is no doubt that there will now be all sorts of spending reduction plans, cost savings and other economies. The pain really does start here. This government has teeth and it is 'getting real'.

So it's good to finally get the deficit skeleton out of the closet and breathe a sigh of relief that we now have a principled government that understands the seriousness of the situation and the need to keep the markets happy. We in the UK deserve better than the 'Greek route', and hopefully we now have the leadership we deserve. But be under no illusion - the honeymoon will be short, and the medicine will be sharp. And in the words of George W Bush: 'Bring it on!'

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