Allaying risk of further recession requires bolder action
Government must press ahead with labour market deregulation
IEA comment on latest growth figures
Structural problems still undermine economic growth
“The UK economy is consistently flat-lining. The government is still failing to address the underlying problems limiting growth.
“Public spending is still far too high, with a tax burden to match. Government debt is growing at an alarming rate and we remain a highly regulated economy.
“Bold reform, rather than tinkering is needed or we will continue to keep facing the prospect of falling back into recession.
“With total borrowing at £106.5bn so far this financial year (around £4,000 per household), a £7.2bn increase on the same period in 2011/12, the government’s fiscal consolidation plan clearly has a long way to go.”
Notes to editors:
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The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
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