After the sunshine of the Downing St rose garden, the gloom of the public finances. This
morning’s newspapers are full of stories about the tax hikes and spending cuts that our coalition government is looking to introduce. The Sun and the Times dwell on yesterday’s forecast for a rise in VAT. The Guardian outlines possible cuts to middle-class benefits. And there’s plenty more besides.
Two articles, though, are particularly indicative of the tensions that the government will face. Interviewed in the Sun, David Cameron has to go on the defensive about tax rises; insisting that “The Conservative party is still a low-tax party, a tax-cutting party – and that’s in the agreement.” And the Scotsman claims that Alex Salmond is set to demand £700 million more cash for Scotland when he meets the Prime Minister later today.
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