Cutting the deficit: There is an alternative
Article
Progressive economists believe the Coalition's plan for rapid and deep deficit reduction will put at risk the fragile economic recovery and undermine prospects for future growth and shared prosperity.
However, beyond simple protest, it is incumbent upon those who are critical of the Coalition government's plans to propose credible and costed alternatives. This briefing paper sets out to do just that.
In summary, ippr's alternative plan for deficit reduction states that the government should:
- Maintain investment on capital projects
- Reduce the underlying deficit more slowly
- Maintain a 65:35 ratio between spending cuts and taxes
- Accept that the 20% rate of VAT will not be reversed
- Tax universal benefits
- Lift the ring-fence on NHS spending.
Related items
The homes that children deserve: Housing policy to support families
As the government seeks to develop a new child poverty strategy, it will need to grapple with housing – the single largest cost faced by families.Powering up public support for electric vehicles
Tackling greenhouse gas emissions will only work if public support for action remains strong. That means ensuring tangible improvements in people’s lives and heading off any brewing backlash.Assessing the economy
Over the past few days and weeks, there has been lots of rather histrionic commentary about the UK’s economic situation as if the budget has created an economic disaster from which we’ll never recover.