IFS says ‘don’t cut now’

Posted on

IFS warns further squeeze on public spending needed | Business | guardian.co.uk .

Let me be honest, I think of the Institute for Fiscal Studies as a Tory outpost. And it has said:

while ... investors needed to be reassured that the legacy of debt left by the recession would be tackled, the study said the economy was too fragile to withstand a drastic tightening in policy during 2010. With the economy only just about returning to growth in late 2009, the IFS/Barclays Green Budget said the Treasury should avoid "putting the recovery at undue risk with significant extra tax increases or spending cuts in the coming year".

Is Osborne deaf, I wonder? And are all those prospective Tory candidates who think cutting the budget deficit is the #1 priority for the Tories similarly afflcited?

It would be economic suicide for the UK. Why don't they do the economic U-turn now and admit that they've been wrong, wrong, wrong.

As some of us have said for some time.

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