For the last eighteen months I have explained how the government’s strategy has been based around a private sector squeeze – more taxes and higher public sector fees and charges – and continued real expansion of public sector spending. Most people write about big cuts to the public sector, without accepting the overall position is as I have described.
Today I can point them to the official figures in yesterday’s OBR book. On page 28 Table shows that government consumption increased real GDP by 0.5%, whilst private consumption decreased real GDP by the same amount. In other words, in the year to June 2011, people were taxed more to pay for a further real increase in public spending.