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Corkers
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U-turns

Austerity

  • PM: We’ll come through if we hold firm – Sky, 7 March 2012
  • David Cameron Rebuked For Making Misleading Economy Claim, AgainĀ - the Huffington Post, 8 March 2013

In March David Cameron claimed that the Office for Budget Responsibility (OBR) position was that austerity was not the cause of the flatlining economy. Sky reported:

In a high-profile speech on Thursday, the prime minister said the OBR was “absolutely clear that the deficit reduction plan is not responsible” for depressed growth, adding “in fact, quite the opposite”.

A few days later, the head of the independent fiscal watchdog wrote to Cameron saying he had misrepresented the OBR’s position. The Huffington Post reports:

David Cameron has been rebuked for giving a misleading account of his government’s economic record, after he claimed the Office for Budget Responsibility (OBR) has said austerity measures were not to blame for the lack of growth.

…On Friday Robert Chote, the chairman of the OBR, has wrote to Cameron to complain this was misleading. “For the avoidance of doubt, I think it is important to point out that every forecast published by the OBR since the June 2010 Budget has incorporated the widely held assumption that tax increases and spending cuts reduce economic growth in the short term, ” he said.

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