The Myth of “Austerity” Britain

The Myth of “Austerity” Britain

Published on 28/08/2014

Public spending is up 5% year on year, with the government on track to overspend by £111B in 2014/5 [v the Budget’s £95B forecast]. During this Government’s tenure to 2015, public debt is forecast to double since taking office in 2010 and will have borrowed more in 5 years than the previous government in 13.

The issue is not the amount of tax collected but rather government spending that is out of control. Post the election next year, it is forecast that spending cuts of 35% will be required plus yet more tax rises on top of the 509 introduced since 2010.

Based on an article by Mike Riddell at M&G Investments who says the Treasury figures explode the “myth of austerity”. Riddell argues there has not been any real austerity in UK for a number of years as the Government has failed to cut spending.

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