Monday, 18 October 2010

Those 'slashing cuts' in proportion

The Labour/BBC narrative is of slashing cuts, the truth is of course somewhat at variance and I do not understand why George Osborne, David Cameron et al are not shouting this fact in every interview.

Here is part of Tim Morgan's analysis for the centre for Policy Studies, Dr Tim Morgan being Global Head of Research at Tullett Prebon plc, one of the world's largest inter-dealer brokers:
'The public spending cuts planned by the Coalition only involve reversing, over five
years, a comparatively small part of the enormous real-terms increase which took
place over the preceding decade.

In 1999-2000, UK government spending was £343bn, a figure which would, had it simply
moved in line with inflation, have reached about £450bn by 2009-10. Actual spending in that year had risen to £669bn, a massive (53%) increase in real terms.

The spending plans outlined in the 2010 June budget reduce real-terms outlays from
a projected £697bn this year to £686bn in 2015-16. Spending then will actually be
higher than it was in 2009.

Interest payments and the political decision to maintain health and foreign aid budgets means that spending by unprotected departments will fall in real terms. But the fall is only 7% – from £523bn this year to £485bn by 2015-16.'

The BBC/Labour narrative does not allow for such comments to be explained, there is a government to destroy. The BBC's Robert Peston was decrying the business men who wrote supporting George Osborne's cuts by saying that they were business leaders not economists; what reason will he have for disallowing Dr Morgan's comments?

Thanks to Alex Masterley for the spot.

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