The cuts start to bite

If anyone had any doubt about the severity of the Central Government cuts to come over the next few years, then look at the drive by the Tories to cut minuscule - but politically very significant - items of public expenditure in the House.

£2.10 for a pint of Fosters in the House of Commons might seem not unreasonable, but it is about half the price of a pint in some where like the Red Lion in Whitehall. It is clear that they are (scuccessuly) grabbing the moral high ground, but portraying themselves as spendthifts. Albeit millionaire spendthrifts.

Not everywhere in London is like the hothouse and very wealthy atmosphere of Westminster. On a very recent visit to London I spent a few days in the city meeting various people in City Hall and I had the chance to have a pint in some nice, friendly, local pubs. But these are the sorts of places where MPs will never venture, but where you meet the real local people, and pay £3.50 a pint; but where you get the 'real' story of what life is like for the real members of the public.

But politicians often like to insulate themselves from the effect of their actions, and the best example of that is trying to pass the blame for cuts onto others.

My good contacts in Scottish Government circles tell me that the impact of the Westminster cuts is starting to give due cause for concern in Holyrood about how this going to impact on the next rounds of elections.

The old rule was "blame Westminster for cutting our funding" and "blame Councils for specific cuts", but none of this holds true any more.

The cuts in HIE budgets are well documented, and today we see huge cuts in the budgets of Lews Castle College which will decimate the very successful evening classes offered. Look very carefully at the 'denial' of cuts in the crofting grant scheme; and realise that the scheme is going to shrink and be more 'targeted'.

The realisation is that there is a limit to the gullibility of the public, and that the blame will soon land at the door of Government is causing serious levels of panic as the impact of holding the purse strings reaches home.

There have been too many expensive promises that have bought some goodwill but caused a huge hole in the Scottish budget that is going to have to be filled sooner or later. Although our business benefited from the abolition of Business Rates, it was only £1,000 and if a business couldn't afford that then they were in serious $h1t anyway. Now, we pay no rates which we have little interest in how the Council spends our money [ok, that's not exactly true in our particular situation but I am generalising] yet it costs the Government a huge pile: a pile that grows each and every year.

Make the scenario simple. I get the inheritance; I gift vast promises to relatives; I promise huge regular donations to worthy organisations; I take time off work because I can afford it; interest rates fall and the stock market crashes; I don't adjust my outgoings; my investment income falls; my salary is reduced because my employer is less profitable; 18 months later I realise I have hit the limit on my overdraft.

That is where the Scottish Government will be very, very, soon, and that is the news that is causing discomfort and all levels.

Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

One hundred and forty years later and the basic principles still hold true.