Premature austerity measures have cost Britain 16.5% in economic growth’ warns leading forecaster
August 04, 2012
George Osborne’s austerity measures may have cost Britain 16.5 per cent in GDP growth over a decade, a leading economic think-tank forecast today.
Had the Chancellor withheld from a deficit-reduction package of cuts and tax rises until 2014, he could have avoided this year’s double-dip recession and saved the equivalent of £239billion in 2010 prices, the National Institute of Economic and Social Research predicted.
The forecasts are likely to pile further pressure on the coalition government to change its austerity tactics, which detractors increasingly blame for the slump in the economy.