Friday, 30 March 2012

The Independent: "Cuts, what cuts? These cuts, Mr Redwood"

"From the blog of the MP for Wokingham:
“The Government and the Office for Budget Responsibility  tell us that real public spending rose by 1.5% in 2010, by  0.3% in 2011 and is forecast to rise by another 0.5% this year. Of course there are individual cuts, to help pay for the increases in health, overseas aid, EU spending and the other growing areas. It is however important to understand that there has been and still is a rise in overall current spending, not just in cash terms but also after allowing for inflation.”
"This is narrowly true, but broadly misleading.

"Note that Mr Redwood refers to 'current spending' by the Government when making his argument. This is important because this excludes government capital investment spending – on transport infrastructure projects, new school buildings, hospital renovations, etc. 

"And investment spending has been falling dramatically, as this chart, courtesy of Vicky Redwood (no relation) of Capital Economics shows..."

Link to The Independent

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