The austerity hasn’t started yet

Another month, and another all-time record for state spending in Britain. The government splurged £1.8 billion a day in April — of which £332 million a day was borrowed. Up goes the national debt. All of which leaves us with the question: where is this austerity that George Osborne keeps talking about? He’s been in No.11 a year now, and each month state spending has been — on average — 4.9 per cent higher than the same month under Gordon Brown. He seems to be taking the St Augustine approach to fiscal conservatism: Lord, give me spending restraint. But not yet.

The below graph shows state spending, per month. The amount in red is how much the government had to bum from the City:

This does not look so much different to Labour’s plans. The two parties are rhetorically very different, but following a very similar policy. The Guardian says on its front page today that Cameron is “looking for Obama’s backing on deficit cuts”.