Why George Osborne’s ‘Plan A’ has failed – and what to do next
From our UK edition
Does George Osborne need to adopt a Plan B? This will be the topic for a Spectator debate a week on Monday. But the argument is pretty clear to everyone with even a passing interest in the trials of George Osborne. Let’s look at the story so far. His Plan A - accelerated fiscal consolidation - was based on two key premises: there was no alternative to cutting the deficit much more sharply than previously planned, because otherwise the markets would panic and long-term interest rates would rise sharply. As one Treasury Minister put it: 'Britain’s AAA credit rating was under threat...George Osborne had no choice but to come up with a comprehensive deficit reduction plan—not to merely halve the deficit over four years, but eliminate it.