6 September 2011

Who's Getting Their Way On Spending Cuts?

Before the general election, all the main parties agreed that the deficit needed to be tackled over the next 5 years. The country couldn't go on spending £1 in every 4 raised just on debt interest.

The IFS scrutinised the deficit reduction plans of the three main parties in the run up to polling day. They calculated that the Conservatives were pledging £96bn of spending cuts by 2015, while the Lib Dems would cut £80bn.

We now know that these two parties would form a Coalition government. In October they announced their Comprehensive Spending Review. Its figures show that the Coalition will cut £81bn from government spending by 2015.

I know my readers are intelligent souls, so I'll leave you to work out whether £81bn is closer to the Lib Dem £80bn or the Tory £96bn.

Let's not forget Labour in this. The IFS calculated they would make £82bn of spending cuts, only the slightest bit different from the Coalition's £81bn. Labour now oppose every single cut the Coalition is making.


Paul Crowley said...

ERROR: You appear to have linked to a Daily Mail article as evidence for something.

Duncan Stott said...

Have you any substantial criticisms of the Daily Mail article? Name me a cut Labour supports.

Anonymous said...

Duncan: I'm assuming this graphic refers to the 2010 manifestos!
Besides it's not at all clear where labour stnads anymore. :(

Duncan Stott said...

Basically yes. Specifically the "pledged cuts" values are based on IFS analysis of each party's 2010 manifesto commitments. No party fully spelled out their cuts in full so the IFS had to extrapolate from their deficit reduction plans. I linked to the research in the article.

Left Lib said...

The timing of the cuts is the key point. The cuts have come at a time of low growth and have choked off the recovery. The point is to stimulate growth first so that the deadening impact of cuts is less severe. This is what we argued before the general election. We were right then and wrong now.