Tag Archives: fiscal policy

Opinion: Fiscal consolidation and the Liberal Democrats

Newly minted coins by James Cridland james.cridland.net
Over the past few days, questions have emerged about the Liberal Democrats’ proposals for fiscal consolidation. Liberal Reform felt it would therefore be helpful to clarify what the challenges are, to explain how some of the figures are derived and to help people understand what the scale of the problem is.

Which deficit are we cutting and how much does it cost?

All three political parties have committed to eliminating the budget deficit over the next parliament. There are two things that divide the parties, however:

  • The speed of the consolidation – in what year will the budget be balanced
  • The definition of the “budget deficit.”

The Liberal Democrats have committed to eliminate the budget deficit by 2018-19. The Labour Party have postponed consolidation to 2020 and the Conservatives are being vague about when in the next parliament the budget will balance. The Lib Dems position reflects current government plans.

Posted in Op-eds | Also tagged , and | 33 Comments
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Recent Comments

  • User AvatarPaul Reynolds 17th Jul - 12:09am
    This is an interesting debate, intended as exoteric but veering towards esoteric ! Some comments reflect quite a popular view in the Lib Dems, which...
  • User AvatarZak 16th Jul - 11:41pm
    @David Raw I'd recommend you check out the Adam Smith Institute policy page. There's honestly some of the best liberal policies on there. @Fraser I...
  • User Avatarfrankie 16th Jul - 11:34pm
    In all, 14 Tories rebelled against the government’s adopted ERG amendment (new clause 36): Heidi Allen Guto Bebb Rochard Benyon Ken Clarke Jonathan Djanogly Domonic...
  • User AvatarFraser Coppin 16th Jul - 11:08pm
    @Paul Walter - It's fine, I fully expected that this article would ruffle a few feathers, and that's fine. We're having a conservation about one...
  • User AvatarAlan Greenfield 16th Jul - 10:43pm
    A week is a long time in politics - things can change really quickly - keep going - we know we are right on this...
  • User Avatarfrankie 16th Jul - 10:18pm
    Jennie, i suspect that the majority of "those who want to get into parliament, and who will give up their liberal ideals to get there"...