Cuts? What cuts?

From the TUC:

the most savage cuts in our welfare and social infrastructure for generations.

Hmm, so what cuts are those?

What the coalition\’s spending plans really amount to is a five-year, real terms freeze of current expenditure, combined with three years of significant falls in capital expenditure. The overall impact of that is a a very small, real terms drop in TME (roundabout 1.5%) between now and 2015-16.

Oh.

3 thoughts on “Cuts? What cuts?”

  1. Yeah but if they don’t go absolutely mental at tiny cuts, politicians won’t be scared of making actual cuts.

    I mean, this is still just the deficit we’re dealing with. That Labour enlarged the state by 30%… we’re not dealing with that at all. We’re still going to be 30% larger than 1997.

  2. I thought when they adopted Keynes in 2007/2008 they used this as an excuse to bring capital spending forward. In which case there should be a drop in capital spending in future years.

    Or does Keynes only work when it comes to spending?

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