Magazine article The Spectator

Spending Review Barometer

Magazine article The Spectator

Spending Review Barometer

Article excerpt

The misery index

The index below shows the real average take-home pay after ination and tax falling at a steeper rate than at any time since the 1980s. Our thanks to Ian Stewart, chief economist at Deloitte, for compiling the graph for us. The data is not publicly available.

Graph: Thomson Reuters Datastream Who's cut deeper Will Hutton, an adviser to the government, said that it is about to launch the 'deepest cuts in public spending ever mounted by a government in modern times'. The Treasury intends to cut state spending by 7.5 per cent of gross domestic product by 2015/16. This is how it compares to other attempts at fiscal consolidation:

Finland, 1993 -14%

Sweden, 1993 -14%

Ireland, 1982 -12%

Belgium, 1983 -12%

Canada, 1992 -9.5%

UK (Howe), 1981 -8.2%

UK (Osborne), 2010 -7.5%

Netherlands, 1993 -7.5%

UK (Lamont/Clarke), 1992 -7.2%

Spain, 1993 -6.4%

Source: European Central Bank

The state of the regions

State spending as a share of economic output, in selected parts of Britain, with international comparisons in italics:

Wales 69%

North-East 64%

Denmark 60%

North-West 57%

France 56%

Scotland 55%

West Midlands 55%

Italy 52%

South-West 49%

England average 47%

United States 42%

South-East 41%

Japan 41%

London 36%

South Korea 30%

Source: CEBR; OECD

Who's hurting most? …

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