After Mervyn King’s comments yesterday there must have been some disgruntled people in the Treasury, and in particular the Chancellor, Alistair Darling. So what is this all about?
Well firstly Mervyn King raised alarm at the size of UK budget deficit and commented that this needs to be addressed within the term of the next parliament – effectively stating that there needs t0 be spending cuts. and this is clearly at odds with the Chancellor after the statement in the previous week where Gordon Brown stated that the Tories want to cut spending whilst Labour want to continue investing. So, who is right, Mervyn King or the Chancellor, well the experts seem to be siding with Mervyn King. It will be interesting to see what is in the next budget.
