The Osborne budget 1 year on
June 23rd, 2011Yesterday the Commons debated the Government’s economic strategy on the first anniversary of Osborne’s 2010 budget. It was a predictable bear garden, but the Osborne record certainly took a caning. My contribution was as follows:
“The latest figures for public sector net borrowing—which show levels 50% higher than last year, just before the election—are the first clear sign that the Chancellor’s massive cuts strategy is not just in serious trouble, but going backwards. That comes as no great surprise to people like us who have constantly argued that lower growth—and growth has been nil over the last six months—and the prospect of a prolonged period of stagnation will lead to a fall in tax receipts that will swamp the effects of expenditure cuts. That is central to this whole debate, but the Chancellor did not mention it. But there’s a great deal more. (more…)
