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Taxes must be raised

The government has done well with spending cuts—but it’s not enough

By Paul Johnson   210

Economic growth may finally be returning—but it won’t obviate the need for further fiscal tightening. To get the public finances back into shape will require more than the additional year of spending cuts, for 2015-16, set out by the Chancellor in June. Two more years of cuts have been pencilled into the Treasury’s plans. They are needed to meet the government’s target of closing the structural budget deficit over the next five years.

There is considerable satisfaction within some parts of government that cuts thus far appear to have been delivered more easily than many had feared. Nevertheless, the fiscal…

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