Ministers have been ordered to review every new spending decision made
Labour this year in a bid to identify ways to slash more from the
Mr Osborne said the immediate cutbacks are backed by the Bank of England
the Treasury and failing to act quickly would be "disastrous" for the
A new watchdog, which will take over the job of making economic
begun work on an independent audit of the public books to inform next
Trade union leaders condemned the speedy cuts - warning they would put
"fragile" recovery from recession at risk and accusing ministers of
It is interesting that spending cuts are backed by institutions like the Bank of England who initially supported huge government spending programs that bailed out the financial industry. The financial industry has a vested interest in the government diverting money away from social programs because it usually means more money for them. The financial sector's schizophrenic attitude to government spending really is a sight to behold: Spending is OK when it is used to revive banks, but not when used to revive regular people.
The truth is, government spending during a recession works (as we have seen in the financial sector) a fact that the Right likes to ignore. While the deficit should be a major concern, creating jobs, infrastructure and other revenue streams is a more pressing issue given we don't have the money to pay the debt off in the first place.