I had composed this headline in my mind when I heard on the radio that the government will announce its first cuts next week, following urgent review of the projects and plans the last government approved for spending in the first four months of this year. They are right to do so.
Sterling has devalued by 5% against the dollar since the election. The markets are not in panic, but they are making their point. The government needs to start reducing spending early next week, and to show they are serious about getting on top of the deficit.
There will be some easy cuts to make from the political projects Labour waived through in the last few days in office. If there are cancellation costs, then pay them. It will be much cheaper in the long run, as the state does not have the money to pay all the bills.
The government does also intend to publish its own figures for the off balance sheet items. The debate on this site has seen some suggesting it will be too much to tell us the truth. I think it essential they tell us the truth about the financial position. Some of us have been telling the public to add in large extra sums to the claimed figures for public debt, so it would be silly for the government to think that by refusing to acknowledge it they could fool the markets.