UK cuts must double to match Canada model

The Government would have to double the scale of the cuts it has already planned to come anywhere near to Canada's example of a public sector bonfire, experts have said.

David Cameron has warned the public finances are in a worse position than previously thought, and is said to favour the Canadian model of savage spending cuts to plug the deficit, the Telegraph reports. The 20% cut in public spending Canada implemented in the 1990s would be equivalent today to some £140bn worth of public spending cuts, says the Institute of Economic Affairs (IEA). This is dramatically higher than the £71bn the Conservatives signalled they would aim for ahead of the election, and would necessitate the biggest reduction in public spending on record. Read more....