Richard Wellings appeared BBC Radio Merseyside to discuss the spending review.
Dr Wellings said that George Osborne is relying too much on a robust recovery, that if the economy stagnates or does not grow as quickly as he is expecting, the markets will lose faith in the government repaying their debts. Although to some extent growth is stimulated by investment, the benefits of this will take roughly 7-8 years to come into effect. Dr Wellings argued that regulation is detrimental to growth, for instance, the price of energy has been pushed up through regulation alone, therefore deregulation is a more immediate and more effective way to promote productivity and grow the economy as cutting taxes is not necessarily an option for Mr Osborne.
Listen to the full programme here. Segment begins at 1:05:35.