unkindest cut
If Mr Osborne isn’t careful, he could get all the unpopularity of being a cutter of public spending without actually being one. Jonathan Loynes of Capital Economics points out that the shadow-chancellor’s £7 billion is small fry when compared to a possible £200 billion deficit this fiscal year. Great swathes of activity need to be transferred to private hands, with people paying directly for the services they receive rather than doing so indirectly (and inefficiently) through taxation. Mr Loynes suggests cuts of £70 billion are needed.
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