New research by the IEA shows that if the Conservatives or other parties do not want to raise taxes they must cut spending plans by £167bn. Todays report Cutting public spending by £167bn: A modest but necessary aim sets out clearly the scale of the problem the UK is facing.
Mark Littlewood, Director General of the Institute of Economic Affairs, said:
In the lead up to the political parties launching their manifestos this finding should be a massive wake up call.
So far we have heard precious little from any party about the need to make substantial cuts. However, if they arent intending to cut public spending dramatically they must be planning on raising taxes. Perhaps unsurprisingly we are yet to hear this acknowledgement from any politicians.
The current arguments about whether or not to raise National Insurance by