New research by the IEA shows that if the Conservatives or other parties do not want to raise taxes they must cut spending plans by £167bn. Today’s report Cutting public spending by £167bn: A modest but necessary aim sets out clearly the scale of the problem the UK is facing.
Mark Littlewood, Director General of the Institute of Economic Affairs, said:
“In the lead up to the political parties launching their manifestos this finding should be a massive wake up call.”
“So far we have heard precious little from any party about the need to make substantial cuts. However, if they aren’t intending to cut public spending dramatically they must be planning on raising taxes. Perhaps unsurprisingly we are yet to hear this acknowledgement from any politicians.”
“The current arguments about whether or not to raise National Insurance by a fraction are grossly inadequate. Cuts must be made far in excess of ‘efficiency savings’ or the British public may be sure their taxes will rise substantially to plug the gap..."
£167 billion is, roughly speaking, the amount of money that the government has had to borrow in the last year. That's £167,000,000,000 or one hundred and sixty seven thousand million pounds.
This simply cannot go on and, as Guido so neatly illustrated, the Tories have so far committed to concrete cuts of a derisory £6 billion.
The people of this country are going to have to realise that the molly-coddling and pampering that they have become used to, in this great social democracy that they've embraced, is going to have to end. It. Is. Not. Sustainable.
And there's no point is trying to delay the pain: it is going to have to end and, if not now, then very soon.