The report outlines how a progressive government could end austerity in 2015, reverse many of this Government’s cuts, earn the trust of the electorate to spend their money wisely and eliminate the structural deficit.
Neal Lawson, Chair of Compass said:
‘Labour shifting on to austerity-lite terrain makes no economic or political sense. The economy needs people in work to repay the deficit. Labour voters will just hear the same mantra of cuts and caps and abstain or vote for a protest party.’
The report is based around a four point plan for growth:
– A £55 billion fiscal stimulus in green and social infrastructure spending
– Tough fiscal rules with democratic fiscal oversight
– Once recovery is assured, the elimination of the structural deficit through a series of progressive tax rises and cuts in wasteful public spending
– A restructuring of public services to ensure sustained efficiency, responsiveness and innovation.
The alternative spending review plan is supported by a string of top economists and ex Labour Minister Rt.Hon Peter Hain MP.[iii]
Notes for editors:
[i] Compass, with a membership of 5000 and supporter base of 60,000 is the home for people who know that no single issue or party can deliver a good society alone, one that is much more equal, sustainable and democratic. See www.compassonline.org.uk/about for more information.
[ii] The full publication available to download at http://www.compassonline.org.uk/publications/spending-review/
[iii] For a list of supporters see http://www.guardian.co.uk/business/2013/jun/23/alternatives-prolonging-osborne-austerity