Labour Can't Cut Its Way To Growth

5th August 2024

Although Rachel Reeves seems to think otherwise, it's a simple economic truth that no government can create growth by cutting its spending. That's because, without exception, the government’s spending is someone else’s income, and so by cutting its own spending, a government always reduces the income in its economy.

ABOUT RICHARD MURPHY
Richard Murphy is Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best known book is ‘The Joy of Tax’.