Osborne only moved us a fraction of an inch towards real budget restraint

Mark Littlewood writes for City AM

Maddeningly, the chancellor seems to have concluded that the best way to cross a chasm is to do so in several leaps. Having failed in 2010 to undertake a truly Comprehensive Spending Review to match his hawkish rhetoric, yesterday he found himself in the position of making another effort to nibble away at Britain's bloated sector.

As the coalition based its first attempts at fiscal consolidation on relatively modest savings and over-optimistic growth assumptions, it is now desperately seeing it is can trim spending by a fraction here and there to retain some semblance of credibility.

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MADDENINGLY, the chancellor seems to have concluded that the best way to cross a chasm is to do so in several leaps. Having failed in 2010 to undertake a truly Comprehensive Spending Review to match his hawkish rhetoric, yesterday he found himself in the position of making another effort to nibble away at Britain’s bloated public sector.

As the coalition based its first attempts at fiscal consolidation on relatively modest savings and over-optimistic growth assumptions, it is now desperately seeing if it can trim spending by a fraction here and there to retain some semblance of credibility.

It now seems realistic to suggest that the government may fail to balance the books until after 2020, potentially five years or more behind its initial target. By that time, we could be looking back on two decades of budget deficits. If the UK government were a company, it would likely be in the hands of the administrators or facing liquidation by now.

- See more at: http://www.cityam.com/article/osborne-only-moved-us-fraction-inch-towards-real-budget-restraint#sthash.pHOnmUX0.dpuf

MADDENINGLY, the chancellor seems to have concluded that the best way to cross a chasm is to do so in several leaps. Having failed in 2010 to undertake a truly Comprehensive Spending Review to match his hawkish rhetoric, yesterday he found himself in the position of making another effort to nibble away at Britain’s bloated public sector.

As the coalition based its first attempts at fiscal consolidation on relatively modest savings and over-optimistic growth assumptions, it is now desperately seeing if it can trim spending by a fraction here and there to retain some semblance of credibility.

It now seems realistic to suggest that the government may fail to balance the books until after 2020, potentially five years or more behind its initial target. By that time, we could be looking back on two decades of budget deficits. If the UK government were a company, it would likely be in the hands of the administrators or facing liquidation by now.

- See more at: http://www.cityam.com/article/osborne-only-moved-us-fraction-inch-towards-real-budget-restraint#sthash.pHOnmUX0.dpuf

MADDENINGLY, the chancellor seems to have concluded that the best way to cross a chasm is to do so in several leaps. Having failed in 2010 to undertake a truly Comprehensive Spending Review to match his hawkish rhetoric, yesterday he found himself in the position of making another effort to nibble away at Britain’s bloated public sector. - See more at: http://www.cityam.com/article/osborne-only-moved-us-fraction-inch-towards-real-budget-restraint#sthash.pHOnmUX0.dpuf