Yesterday, 3rd December, 2014, The UK Chancellor of the Exchequer, George Osborne, made his autumn statement in which he set out the government’s plans on the economy.
He confirmed that a Tory government will continue to cut public spending in the years to come. Indeed it turns out, “you ain’t seen nothing yet”. As the Office of Budget Responsibility puts it, the government’s plans mean that
Between 2009-10 and 2019-20, spending on public services, administration and grants by central government is projected to fall from 21.2 per cent to 12.6 per cent of GDP and from £5,650 to £3,880 per head in 2014-15 prices. Around 40 per cent of these cuts would have been delivered during this Parliament, with around 60 per cent to come during the next. The implied squeeze on local authority spending is similarly severe.
For a sound analysis of where these cuts will fall, see Richard Murphy’s piece, accurately…