This is an excellent, must-read article from the FT. Check it out!
The article highlights the need to massively increase austerity in the next parliament in the UK to avoid increased taxes or increased borrowing – the alternative is a collapse in public services.
The article is deeply embarrassing for Cameron’s government, ahead of the UK election next year. It once again questions Chancellor Osborne’s judgement. UK growth has been kick-started on the back of government guarantees for first-time home buyers. The UK has done little to increase exports and underlying skills in the economy. At the same time, the Independent Evaluation of the IMF has been critical of excessive focus on austerity, citing the UK.
This blog has consistently argued that the UK government did not have an effective strategy to reform the public sector – it’s either been the bacon-slicer or privatization.
So would you trust a future Conservative Government in the UK with the ax once again?