How the UK has learnt from Sweden and Canada: Brazier

Threadneedle co-head of UK equities Simon Brazier examines the early moves by the coalition in tackling the deficit problem and how the UK has learnt lessons from Sweden and Canada.

The Conservatives have always been prepared to make cuts and after the election they acted quickly to form an Office for Budget Responsibility. As such, we should expect to see more cautious economic growth assumptions and an increase in deficit projections. The reduction in pay and ministerial perks is a clear message that MP's will attempt to lead by example. The emergency budget on the 22nd June, we believe, will echo many of the policies pursued in Canada and Sweden in the early 1990s. Tax rises will focus on consumption, property and negative externalities such as carbon, alcohol...