The myth of cuts

Last week, Ed Balls warned against the effect of George Osborne’s vicious, front-loaded cuts. Today, we have an update in the form of monthly state spending figures. In cash terms, a new record has been set in state largesse. The UK government’s current spending was £51.7 billion in May, up from £50.6 billion in May last year (the last month of Gordon Brown). George Osborne has so far outspent Gordon Brown every month that he’s been in the Treasury. Even adjusted for the runaway inflation, the Chancellor has on average outspent Brown during his first 12 months:
 

 
To fund this extra spending, the Chancellor borrowed £27.4 billion from the public for April and May. Labour chirp today that this is more than the £25.9bn they borrowed in the same period last year. Angela Eagle has this to say: “cutting too far and too fast risks a vicious circle.