WIREDGOV

Responding to the latest growth figures from the ONS, Mark Littlewood, Director General of the Institute of Economic Affairs argues that further substantial cuts are needed to build on the recovery.

He said:

“The latest ONS figures showing growth of 1.2% reveal the absurdity of arguing cuts will trigger a double dip recession. Although the road to recovery will be a rocky one, the overall trend will be better the more strident the action the government takes on cutting public spending.

“Economic growth depends on restoring confidence in the British economy and this requires reducing our national debt significantly. Investors need to know that Britain is serious about re-balancing the books.

“Encouraging people off welfare, moving public servants into the private sector, creating a competitive tax environment, improving the quality of education by changing the funding and governance model, cutting from all departments without ring-fencing and alleviating the burden on the private sector from red tape and restrictive labour laws is the way to ensure we see more positive growth figures.”

Notes to editors

Earlier this year the IEA looked at the level of public spending cuts needed to tackle the UK’s budget deficit. This analysis is contained in Cutting public spending by £167bn: a modest but necessary aim (April 2010).

The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.

The IEA is a registered educational charity and independent of all political parties.