“Politicians are not talking seriously about the need for dramatic and speedy cuts in public expenditure. A few billion here and a few billion there are nowhere near enough to restore market confidence. We can’t be expected to make sufficient savings from so-called efficiency gains; there will need to be major cuts to a whole raft of public services. We also need a radical overhaul of our welfare, education and health systems, to ensure that we don’t suffer as easily in future from the sort of reckless and out-of-control spending that has characterised the last few years.” – Mark Littlewood
Ahead of today’s Budget, we summarise below a series of measures to set the British economy on the course to recovery:
- An urgent plan to cut the deficit
Britain needs an urgent plan to reduce the deficit. Cutting around £100 billion within the next few years must be achievable, especially given that public spending has approximately doubled since 1997.
- A radical overhaul of the welfare system and other public services
To increase savings in the medium term, a radical rethink of the structures of public service finance across areas including health, education and welfare is needed.
- A reversal of previously announced tax rises
The planned increases to National Insurance and income tax should be reversed, along with the reduction in pensions’ tax relief. Zero-rate VAT should be abolished and the money used exclusively to raise personal income tax allowances.