Let’s get real about the fiscal situation

Recently on Coffee House, and elsewhere, some people have been arguing that the deficit reduction isn’t happening fast enough. The latest, a paper from Tullet Prebon, argues that it’s wrong to say there are cuts. Its author, Dr Tim Morgan, reiterated its points on the Today Programme this morning. But it isn’t true — and the analysis itself proves it.
 
When this Government entered office, there was no credible plan to convince the bond markets that Britain was serious about dealing with its debts. So the new Coalition accelerated the pace at which the structural deficit was to be eliminated.
 
Some on the right and left disagree with the pace of this plan. As we all know, Ed Balls’ answer to the debt crisis is even more spending, more borrowing and more debt. He has learnt nothing from the mistakes he made as Gordon Brown’s right-hand man and is consequently isolated in the international debate on deficit reduction.