Government spending, budget deficits and public debt hangs over political discussion in the UK – from Gordon Brown’s ‘fiscal prudence’, the Con-Dems’ austerity drive, through Theresa May accusing Jeremy Corbyn of wanting a ‘magic money tree’, to public sector workers being told by both Starmer’s Labour and the Tories today that there’s not enough money available to give them a living pay increase. NICK HART reviews a recent contribution to the debate.
Follow the Money: How Much Does Britain Cost?
By Paul Johnson
Published by Abacus, 2023, £25
To pull back the curtain on how the UK government raises and spends its money, Paul Johnson has written Follow The Money. A former government economist, Johnson has for the last 12 years been director of the Institute for Fiscal Studies think tank (IFS).
Founded by a quartet of City money men to lobby post-facto against the introduction of Corporation and Capital Gains tax on businesses and wealthy individuals in the late 1960s, the IFS today describes its mission as “guiding politicians and civil servants in implementing effective economic policies”.
In reality, it plays a dual role. As well as carrying out academic research, through its appearance in the opinion pages of newspapers and provision of talking heads to news channels, think tanks such as the IFS provide cover for the broad approach of capitalist politicians in managing public finances – even if they might sometimes speak out against current policies or advocate for reforms.
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