Tax and Fiscal Policy

Utterly irresponsible government spending has to stop



Mark Littlewood responds to the NUS pledge being signed by political candidates

Press Release

Capital Gains Tax doubling could reduce the supply of affordable housing and encourage companies to take on more debt

The IEA responds to George Osborne's economic plans
In response to George Osborne’s announcements this morning, Mark Littlewood, Director General of the Institute of Economic Affairs, said:

“The coalition should look to make up shortfalls in government finances by cutting spending, not by raising taxes. A solution that involves raising taxes as well as cutting spending is simply entrenching the behaviour that got us in this mess in the first place.”

“Utterly irresponsible government spending must stop. If the state of the public finances is even worse than the previous government led us to believe, this simply makes the £6 billion of cuts that are planned even more inadequate. The new government has until the 22 June to work out where it will cut and by how much. We need to get away from the culture of reckless high spending – a radical but achievable aim would be to get public spending down to around 30% of GDP within the current Parliament.”

Notes to Editors

To arrange an interview with Mark Littlewood, IEA Director General, please contact Stephanie Lis, Communications Manager, 077 5171 7781, 020 7799 8900, [email protected].