Rushing to save is wrong reaction

By Jon Massey on July 7, 2010 4:21 PM |

By John Biggs

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So the cuts are coming.

Having previously agreed across the political spectrum that we needed to be careful not to put the brakes on too quickly, to avoid an economic crash, the new Government has changed the tune and announced big and rapid savings.

The budget was just a warm-up - with VAT and other changes in the pipeline - because in the autumn massive cuts in Government spending will start to hit us.

It is interesting how many commentators who went along with the old government have now decided that this was the right thing to do all along.

Their reaction shows quite how many people, even experts, are in the dark. Worrying.

But I'm sticking to my guns. The Government is wrong. This is partly because this policy risks throwing the whole country into an economic hole.

But it is mainly because, living in and representing the East End, I know that when the rest of the country has a problem, even a mild one, we tend to get it worse.

We have made big progress in east London in the past few years but the distress and stress of high unemployment and reduced hope is something we can all do without.

It leads to the sorts of problems governments are elected to solve, not create.

- John Biggs is London Assembly Member, City and East