Why Osborne is announcing more cuts today

borrowingtoGDP

Why is the Chancellor announcing cuts today at all? Figures released by the OBR show why. Despite spending cuts weak growth has meant that from 2011-12 the deficit has barely moved, throwing the government’s strategy way off course.

The deficit fell by 1.7% in 2009-2010 under Labour and has stalled as the government’s plans have taken effect – only 0.4% in 2012-2014.

It looks like the Darling plan on cutting the deficit was right all along.

This post first appeared at the Fabian Society.

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