British Parliament Spending Scandal Spiraling Out Of Control

(MoneyWatch)  Like the United States, Britain is facing a massive increase in their deficit spending that in the long term will be unsustainable. The Gordon Brown government has invested in borrowing to keep up the required social spending while considering tax increases to rates over fifty percent on the richest earners.

Not only this approach to budgeting has raised the ire of the population there has been a scandal related to legislator personnel spending. Recently various English newspapers had demanded to see the Member of Parliament expense reports. In England, unlike in the United States, the elected representatives received money from the government to pay for their housing costs related to attending Parliament while in session. With the publication of the reports it is clear that MP's not only charged extravagant amounts for legal costs but many also abused the system. In some of the most egregious cases Members were getting reimbursed for mortgage payments when they had already payed off the loan and weren't making any.

The disclosures have led to public opinion swinging against all elected representatives not only those who abused the system. The many who did have tarred all of them. If elections were held today the incumbent Labor government would be quickly thrown out and replaced by the Conservatives. Several members have offered to not run when the next election is held. Unfortunately for the people of Britain that is not any time soon. Queen Elizabeth can force an election if she so desires but that is not a power the modern English monarch has ever really wielded.

This illustrates that the global economic situation which has led to reduced tax revenue while increasing spending has placed pressure on societies. Like the recent vote in California demonstrated the days of taxpayers being willing to countenance continued deficit spending for what they perceive as wasteful spending seem to be over. Eventually these beliefs will be taken out on the current set of elected representatives.

Whether it is too late to effect structural change in government spending will have to be seen. It is clear though that the U.S. and Britain cannot continue this level of spending and taxation.