From the TUC

Aggressive cuts are hampering our economic growth

03 Aug 2011, by in Economics

“It is a fact that the aggressive cuts Osborne laid out last year are … hampering our economic growth”.

Not my words, but those of Jim Armitage, business correspondent of the Evening Standard – usually rather a fan of Government policy. There are many straws in the wind that suggest that the business community is getting twitchy about the direction of government policy, having belatedly woken up to the fact that public sector cuts will both depress consumer demand and reduce the number of contracts let to the private sector. As this will in turn reduce tax revenues, there is a real danger of that the economy will enter a “vicious circle”.