In response to George Osborne’s announcements this morning, Mark Littlewood, Director General of the Institute of Economic Affairs, said:
“The coalition should look to make up shortfalls in government finances by cutting spending, not by raising taxes. A solution that involves raising taxes as well as cutting spending is simply entrenching the behaviour that got us in this mess in the first place.”
“Utterly irresponsible government spending must stop. If the state of the public finances is even worse than the previous government led us to believe, this simply makes the £6 billion of cuts that are planned even more inadequate. The new government has until the 22 June to work out where it will cut and by how much. We need to get away from the culture of reckless high spending - a radical but achievable aim would be to get public spending down to around 30% of GDP within the current Parliament.”
To arrange an interview with Mark Littlewood, IEA Director General, please contact Ruth Porter, Communications Manager, 077 5171 7781, 020 7799 8900, firstname.lastname@example.org .