Author Topic: Don't kid us about spending cuts  (Read 5307 times)

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The Prophet

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Don't kid us about spending cuts
« on: May 29, 2012, 08:44:47 am »
Britain has being conning the markets by creating the illusion that we are cutting spending in order not to spook Mr Market and keep interest rates on government bonds low.
The reality is very different.
State spending increased in both 2009-2010 and 2010-2011.
Whilst it fell in 2011-2012, it was only by 1.5% and the total spending was still 2.4% (£22.6bn) higher than in 2008-2009. 
At best the spending "cuts" amount to little more than £1 in every £100 spent.
Whilst the deficit has been cut by £38bn, 75% of this "cut" has come from higher taxes and only 25% from reductions in public spending.


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Re: Don't kid us about spending cuts
« Reply #1 on: July 05, 2012, 10:30:55 am »
Government borrowing increases despite "cuts"
Government spending has gone up by 8% since May 2011 according to the ONS.
Net borrowing in May was £18billion up from £15billion in May 2011.
So much for cutting the deficit as those who were paying taxes lost their jobs in the 'savings', are now receiving benefits.
Never mind Plan A or Plan B, I would be happy if the government  just had a Plan and knew what they were doing!
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