Controlling Spending and Government Deficits draws from twelve international and historical case studies in order to examine how Britain might best rid itself of the current overwhelming deficit.
Policy Exchange’s Chief Economist and author of the report Andrew Lilico said:
“We found that a number of countries which cut their deficits benefited from lower long term interest rates and higher confidence, leading to faster growth as a result. However, it is important that most of the deficit reduction effort should come from spending cuts not tax rises. We found that countries which tried to fix their finances mostly with tax rises have tended to fail.”