Macroeconomics: UK economy, IB Economics

Richard Partington summarises the fiscal debate, arguing that, for all the smoke-and-mirrors, it's Conservative policy that requires the greatest scrutiny because of its lack of plausibility, rather than any incoming Labour government. 

He argues that if you look at existing Conservative commitments to defence and overseas development assistance, for example, then any promise to cut taxes simply isn't feasible, and has been recognised as such by the Institute for Fiscal Studies. However, flinging mud is easy. the reality is that growth, whatever it's form is going to require higher levels of investment and at the moment only one party seems to have any sort of plan for that. 

The Institute for Fiscal Studies (IFS) work is always worth reading, and the latest research is no different, suggesting that ending austerity is going to prove about as easy as winning a trade war. Indeed, merely maintaining per capita spending in many sector is going to require a significant increase in spending. 

Factor in pre-existing commitments to the NHS, defence and the aid budget and it looks far harder to achieve than many would have thought.