Britain should follow Canada and cut £140bn from public spending

Mark Littlewood calls for 20% across the board spending cuts to reduce deficit

Responding to David Cameron’s speech, Mark Littlewood, Director General of the Institute of Economic Affairs, said:

“The Prime Minster is right to embrace Canada’s approach to sorting out the public finances. Following their example and cutting public spending by around 20% would mean cutting public spending by about £140bn. This is vastly more ambitious and encouraging than anything promised in the Conservative manifesto.”

“Reforms on this scale would require decisive action and strong political leadership. There would inevitably be some short term pain if Britain moves towards providing more and more services in the private rather than public sector. However, over the medium term this would leave the country in a stronger position and ensure that key services are provided at a far better level than most British people have become accustomed to.”

“The real challenge for David Cameron now is whether this is tough political rhetoric or a genuine signal that his government is going to take positive action. On that question the jury is still out.”

To arrange an interview with Mark Littlewood, IEA Director General or Philip Booth, IEA Editorial and Programme Director, please contact Ruth Porter, Communications Manager, 077 5171 7781, 020 7799 8900, rporter@iea.org.uk.