Menu
Share
Share this story
Close X
 
Switch to Desktop Site

Britain's spending revolution: winners and losers

(Read article summary)
View video

Tom Clougherty / The Adam Smith Institute

(Read caption) Here's the breakdown of changes to British spending between now and 2014-2015, assuming 2 percent inflation and assuming all proposed cuts are implemented.

View photo

Here's a quick break down of the real terms spending cuts and spending increases that the various government departments face. The reason that the overall figure (2 percent) is so low, despite apparently swingeing cuts to some departments, is that some of the biggest spending items (health, welfare and debt interest payments) have been spared the chancellor's axe. The figures in the right hand column represent the percentage rise or fall in spending between now and 2014-15.

Incidentally, my real terms percentages are slightly different from the Treasury's because – for the sake of simplicity – I have assumed 2 percent a year inflation, rather than using the Treasury's GDP deflators. Obviously, exactly how big the cuts will turn out to be in real terms does depend on the rate of inflation over the next five years.

About these ads

Add/view comments on this post.

------------------------------

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link above.


Follow Stories Like This
Get the Monitor stories you care about delivered to your inbox.