Latest Issue

How to cut £90bn a year

The next government will have to slash spending and raise taxes. But what's the best way to save?

By David Halpern   July 2009

To discuss this article visit First Drafts, Prospect’s blog In 2010 British public sector borrowing will be £175bn—more than the health and criminal justice budgets combined. The “structural gap” in our finances, after spending on the recession, is £90bn a year. And government figures now imply that reducing this gap will have to come mainly from cuts, not tax increases. The rows over public spending have barely begun.

Britain has been here before. The Institute for Fiscal Studies thinks our late 1970s fiscal hole was larger than today’s. Back then, our debts were eased by inflation and the windfall of…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

We want to hear what you think about this article. Submit a letter to

More From Prospect