George Osborne, the UK Chancellor, has stated that cuts to spending must continue if the government is to remain credibility and trusted by the people. However, not everyone agrees with the continued cutting of spending such as the chief economist of the International Monetary Fund, Olivier Blanchard.
Mr Osborne said pension, education and welfare reform was helping to make the UK a more competitive economy, while cuts to corporation tax and higher-rate tax were making the country a more attractive place to do business. Such reforms would make the British economy “a winner in the global competitive race”, he said, citing sectors such as aerospace, pharmaceuticals, financial services and the creative industries as “world beaters”.
However, these cuts must continue until 2017 according to Osborne if the UK is “to continue moving in the right direction”.
Thanks for reading. What are your views on these ‘tactics’ by the British government?