Budget 2011: A case of tunnel vision

Article

The key lesson from today's budget announcement is that the Chancellor's stubbornness is not confined to his approach to deficit reduction: it also extends to his refusal to countenance an industrial strategy.

Just as there will be no 'Plan B' for the deficit, there will not be even a 'Plan A' for supply-side economic policy. The Chancellor is hoping that cuts in public spending, cuts in corporation tax and cuts in regulation will be sufficient to generate strong growth in private sector job creation. History suggests he is wrong. Without a different approach, the result is likely to be economic growth that disappoints over the next few years and sustained high levels of unemployment.

Related items

  1. Entrance sign at the Foreign, Commonwealth and Development office in Westminster

    Reset: Building modern partnerships with the countries of the global south

    The UK's relationships with many countries of the ‘global south’ are in a poor state.
  2. Doctor with patient for consultation, medical advice or procedure at clinic

    Taken to heart: Inequalities in heart disease in Scotland

    More than 7.6 million people across the UK live with cardiovascular disease (CVD), around twice as many as live with Alzheimer’s disease and cancer combined. 
  3. A beautiful sunset in the Scottish highlands with renewable energy wind turbines far into the horizon

    Skills passports: An essential part of a fair transition

    This month, government will publish its Clean Energy Workforce Strategy. This plan covers two aims. First, filling the growing demand for skills in clean energy industries is essential to keep on track to reach the government’s clean power…