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Public spending moment of truth is here (The Scotsman)

    The CPS response to the Autumn Statement was referenced in a comment article by Bill Jamieson for The Scotsman. 

    To read the full article, visit The Scotsman website

    "Significant cuts in departmental spending have already been made but, as the Centre for Policy Studies (CPS) points out, opinion polls consistently show that people have not seen a particular deterioration in the quality of public services. Previous predictions of heavy net job losses in 2010 have been proven inaccurate given the rapid rise in private sector employment.

    The IFS may describe the required cuts in the next parliament as “colossal” but that does not mean they are impossible. We know large amounts have been wasted on failed IT systems, projects that don’t deliver and a welfare budget that has drawn migrants in problematic numbers. A determined and creative approach to government spending which examines how services should be delivered is crucial.

    We could, of course, raise taxes. Many believe this to be a preferable option. But this would risk lower economic growth and higher unemployment.

    Much of the increase in economic growth projected in the Autumn Statement is predicated on sustained growth in investment and an improvement in the trade balance. How this is achieved is, as the CPS points out, unclear “and if growth from 2016 onwards has already been downgraded then future downgrades in medium-term growth rates are also possible”."

    To read the full article, visit The Scotsman website

    Date added: Monday 8th December 2014