MR Osborne’s latest round of unplanned cuts (£3 billion) are a stark admission that Plan A has failed. His deficit reduction plan can best be described as an economic gamble, which has brought much hardship to the poor and little in actual deficit reduction.
Let us not forget that Osborne and Cameron promised that they would pay back the deficit by the time of the next election, however, the deficit is now set to be over £90bn by 2015.
The IMF has been critical of Osborne’s handling of the economy, arguing that his cuts are holding back much- needed growth. Back in the real world it is obvious that austerity makes consumers and businesses more cautious and leads to less spending in the economy, which throws deficit reduction programmes off track.
Britain tried austerity in the 1920s as a way of reducing debt and it failed, that led to the Great Depression. The Tories’ real aim is not to reduce the deficit but to roll back the state to a time before the Second World War where people were left to fend for themselves; the global financial crash has simply provided Cameron and Osborne with cover.
Cllr Nigel Dix
Montclaire Avenue Blackwood