Government 'incapable of cutting spending'

Thursday, March 25th 2010

The government is not able to cut spending, which led to the financial crisis and must be controlled.

According to independent policy adviser Dr Ros Altmann, the recession was a result of government borrowing on public and private sector levels combined with too much spending.

The 2010 Budget revealed yesterday (March 24th) by Alistair Darling failed to sort out these problems, she added.

"Don't be fooled by a few giveaways - the take-aways are coming," Dr Altmann warned.

She added that Britain could see a similar situation to Greece if it does not cut spending.

In his Budget the chancellor said three routes would be taken to sort out the economic problems in the UK.

Tax will be raised, spending will be cut and economic growth will be benefited from, he said yesterday.

But various organisations have stated that more could have been done by Mr Darling.

The Association of Independent Financial Advisers claimed: "The National Insurance increase is disappointing as it acts as a tax on jobs."