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
Facing the future: Progressives in a changing world
Progressive parties need a new set of defining and guiding ideas to challenge the populist radical right.Singapore on the Clyde?
Sir Tom Hunter is not happy.Scotland, he laments, is in “managed decline”. The UK and Scottish governments are “punishing the entrepreneurial community with more tax” and, inevitably, “no country has ever taxed its way to growth”. Change…Fixing the foundations: The case for investing in children's health
For decades, governments of all stripes have promised to give children a better, healthier start to life. But despite this – and some notable policy successes – the UK continues to fall short on childhood health outcomes.