From the TUC

The Budget and hard evidence: not close friends

18 Jun 2010, by Guest in Economics, Politics

Figures out today show that public sector borrowing in May was £2 billion lower than expected because of rising incomes and higher spending which are both generating bigger income tax and VAT revenues.

So why, a casual observer might ask, is George Osborne about to slash spending and raise VAT – measures which will damage confidence, reduce growth and spending and hence drive down those desperately needed tax revenues?  I know the Tories have never been too hot on evidence-based policy but this has to be a new low.

One Response to The Budget and hard evidence: not close friends

  1. James Gunn
    Jul 6th 2010, 11:22 am

    And a less casual answerer might respond “£2bn is peanuts in the context of the our deficit and national debt” and really shouldn’t influence the overall shape of the nation’s Budget” Our less casual responder might also ask whether the casual observer remembers inflation of 27% and mortgage interest rates of 9% were good for the poor. Because that’s what happened last time we lost control of public spending and employed Mugabe economics (debt funding, currency devaluation and printing money) to dig ourselves out of a hole.