The British government has argued that a black hole exists in the public finances to the tune of £22 billion in this financial year. It claims that dealing with this will involve a period of fiscal restraint, which usually means spending cuts.
The details will be revealed in next month’s budget but we’ve already been told that the winter fuel allowance for pensioners will be means tested rather than available for everyone. Austerity is once again on the agenda in British politics.
