Shrinking the state

What would it mean if George Osborne succeeds in cutting public spending to its lowest level since the 1930s?

The scale of the cuts for the rest of this decade implied by the deficit reduction targets in the Autumn Statement takes us into territory uncharted since the war. Many people believe Osborne has moved from the realms of the unlikely to the realms of fantasy and it’s not hard to see why. If the chancellor missed the deficit targets he set out in 2010 by a wide margin, why should we accept what he says in 2014? Especially when he says he can cut taxes at the same time.

Osborne must have hoped that all the headlines would be about stamp duty reform. Instead, news coverage has instead been dominated by the Office for Budget Responsibility’s projections of what further austerity would mean for the public sector. This graph on government consumption as a proportion of GDP sums it up:

1930s

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Treating renters as imbeciles

In the last week parliament has had the chance to tackle two of the most glaring injustices for private tenants and flunked both of them.

After debates in the Lords on Monday and Commons on Friday, letting agents are free to carry on charging outrageous fees to tenants and landlords can continue to evict tenants in retaliation for complaining about unsafe conditions.

The last word on Friday afternoon went to one of the villains of the week proved to be ironically apt. ‘We must not treat the people who enter into these contracts as imbeciles,’ was the very last sentence uttered by Christopher Chope before the debate was terminated and he and Conservative backbench colleague Philip Davies completed their successful attempt to talk out the Tenancies (Reform) Bill.

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