I have been reading quite a few of the commentaries on the public spending review announced by UK chancellor George Osborne published in the newspapers today. Quite a few make the point that in nominal terms public spending will still go up while others say that Osborne is gambling that the net drain on disposable incomes in Great Britain (with the onslaught on welfare bills) will be offset by new private sector jobs.
His figures do not really add up. I doubt if the government will cut welfare fraud by
£5bn and I doubt that a new aircraft carrier will actually cost £7bn. I suppose there will be more spending cuts and tax increases down the line.