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Measuring human development

Spending cuts and the UK economy

Should the new coalition government cut spending to reduce the UK’s public debt? Tejvan R. Pettinger examines the pros and cons of public spending cuts on the economy

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The new UK coalition government has proposed a significant cut in government spending. The cuts announced in October 2010 span the whole spectrum of government departments — from defence to social security.

The government claims these spending cuts are essential to reduce the UK’s large budget deficit. There are, however, concerns that implementing these cuts will have a negative impact on economic growth and unemployment, and that they will also impact on other government objectives such as equality and social efficiency.

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Measuring human development

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