National politics

The pain is necessary

At last night’s cabinet meeting the council was yet again wrestling with the unpleasant business of making do with rather less cash.

This graphic from tonight’s Evening Standard, see article here, shows in the most emphatic way why George Osborne is right and why Ed Balls is wrong. Anyone who tells you that the Coalition government’s deficit reduction policy isn’t necessary really is lying to you or does not understand the consequences of bond rates being in the teens. The loss of spending power families are experiencing now and the retrenchment we are having to inflict on our public services would be a fraction of what would be required if the markets did not believe George Osborne’s plan. Plan B (for Balls) would be national suicide.

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