Thursday, June 24, 2010

Thumbs down for the budget

The more I think about this budget, the less I like it. James Graham sums it up well in the Social Liberal Forum: deficit reduction too fast, ratio of cuts to taxes too high, choice of taxes unfair. The main argument deployed to defend the budget is the need to reassure the money markets. My fear is that the initial confidence of the money men will disappear when it becomes clear that the coalition's ambitious cuts cannot be achieved in the timescale. A more practical and slower plan would have been better economics, better politics and better for the markets too.

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