Monthly Archives: October 2010

We need to start from the current reality. Spending soared in the August figures, up more than 10% on the same month last year. In September there was a record deficit, thanks in part to the very small increase in Income Tax revenue. Slow or no wage growth and the impact of 50% tax rates [...]

So far I have sought to give readers analysis of the figures of the Spending review. Today I want to give my opinions of the politics, and tomorrow my thoughts on the economics that lie behind it. I was not one of those MPs who waved their Order Papers as the Chancellor sat down. I [...]

The UK is looking inwards with the “debate” about public spending. Meanwhile events elsewhere may have a bigger impact on our economic future. On Tuesday China raised her interest rates, seeking to slow her inflation rate which is lower than than our RPI inflation. There were serious wobbles on Wall Street, as investors worried about the security [...]

There’s not a lot to add from the Statement today. As expected, total cash public spending rises every year for five years. Departmental  Expenditure Limits are flat, rising from £326.6 bn to £328.9 billion from this year to 2014-15. There are big cuts in CLG  Communities , down from £2.2 bn to £1.2bn, and cuts [...]

At last the BBC and others accept what readers of this website have known for weeks – that cash spending carries on rising under the government’s  plans.  We have heard of the increases in Health, Schools, Pensions, EU, Overseas Aid and debt interest.  Today we hear of the programmes that are being cut, and doubtless [...]

There is plenty of scope for confusion over the government’s announcement on Wednesday. The government will break down its five year forecasts of spending by department and between its different categories of spending. It may offer “real terms” as well as cash figures. Some people will concentrate on taking five year changes and adjusting them [...]

There are just three central figures in the Treasury Red Book which sum up this government’s 5 year plan. They are figures that very few commentators and journalists seem to want to understand. If you compare 2014-15, this government’s last planned year, with the last year of Labour, you should expect; Public sector current spending [...]

The banks tell us not many businesses want to borrow money. Many have unused overdraft or loan facilities. They say there is money there if you want it. They have just announced a useful £1.5 billion equity fund for small enterprises. Companies tell us there is a shortage of money to grow their companies. Some [...]

We now know the broad shape of the public spending decisions to be unveiled this week. They are: Health spending – up in cash and real terms Schools spending – up in cash and probably in real terms Contributions to the EU – substantially up thanks to loss of part of the rebate Overseas Aid [...]