Daily View: Spending cuts policies

Clare Spencer | 09:45 UK time, Wednesday, 28 April 2010

Commentators discuss politicians' policies on cutting spending.

Iain Martin in the Wall Street Journal argues that the deteriorating situation in debt-laden Greece makes policies on Europe an election issue:

"And what of Britain, which decided to stay out [of the eurozone]? Conceivably it might be in a stronger position, relative to the resulting chaos on mainland Europe. If, and again it's a big if, it tackles its deficit and debt and promotes pro-growth policies starting right away.
"Before polling day, someone should ask the three U.K. party leaders what they make of all this. It would be most interesting to hear Nick Clegg's view; he favors Britain entering the euro. Which might be like arriving late at an undergraduate party just as the guests are leaving and the police have been called."

The Telegraph editorial predicts that Thursday's debate on the economy will lack real honest answers on spending cuts:

"Tomorrow evening, the three party leaders will debate the economy in their final televised encounter. Some candour would be welcome. So would some contrition. So would rigorous scrutiny of Labour's preposterous claims that it had nothing to do with the crash and that it can continue to "invest" in front-line public services, the deficit notwithstanding. We fear, however, that once again the voters are going to be disappointed."

In the Daily Mail Max Hastings is concerned that it was the Institute for Fiscal Studies that outlined on Tuesday the extent of our financial problems and not politicians:

"It seems an appalling indictment of the democratic process that after three weeks of intensive campaigning, not one of the politicians soliciting our votes has attempted to tell the truth about what they must do if they form a government. Their manifestos boast of what they will give the British people. They scarcely begin to admit what they will have to take away."

The Guardian editorial offers an explanation as to why politicians aren't being candid:

"Any government that tried to squeeze public spending that sharply would not merely be making itself unpopular - it would be risking Greek-style mass protests. Even then, it might not be possible: cabinet ministers would struggle to axe sufficient public services fast enough. The very notion of trying to pull off one of the biggest spending cuts in British history within one parliament - which is the goal that all three parties subscribe to - is just implausible. Whatever they say publicly, all serious politicians must know that deep down."

Hamish McRae says in the Independent that whoever gets into power will have to work quickly on fiscal policy:

"It is pure guesswork but my instinct is that the new government will have to produce a fiscal plan by about the middle of July. The reason for that is twofold. First, the Tories have promised an emergency Budget within 50 days of taking office - i.e. before the end of June. That sets a deadline, not just for them but in practice also for any alternative government, for example a Labour-Lib Dem coalition, although it could be stretched a little.
"The second reason is that the world's financial markets will want to know the plans ahead of the summer holidays. Traditionally, financial crises used to happen in July, as dealers straightened out their books before heading off to the sun. But even if that phenomenon is not quite so evident recently it is hard to see markets waiting until the comprehensive spending review in, say, October, before needing some more specific guidance on the government's intention."

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