Friday, November 25, 2011

A government with no money left miraculously finds an extra £1 billion

Details here. The British government has not yet confirmed how this extra £1 billion will be financed. This is the politics of bad timing: while meant to generate positive news headlines, there are national strikes taking place on Wednesday in reaction to the government's insistence that public sector pensions must be slashed because there's no money left. Some will argue that, if the government could so quickly find £1 billion announced today, this is evidence that public finances are not nearly as bad as the government claims and pension reform should not proceed in its current form.

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