The UK faces a twin-pronged fiscal crisis. At about 100% of GDP, public debt is inordinately high and is set to rise a good deal further. Debt interest alone accounts for about three quarters of the government’s budget deficit. And at close to 45% of GDP, the share of government spending in GDP is close to a post-war high, which in turn leads to levels of taxation that are stifling economic growth.

These high levels of taxation can only be reduced by significantly reducing public spending.

This report proposes a series of measures that would reduce public spending by £115 billion per annum by 2030, or 3.2% of GDP which, if implemented, would reduce public spending as a share of GDP to just over 40%. This in turn would lead to reduced borrowing rates and a reduction in debt interest payments, creating a virtuous circle.

Savings and reforms set out in the report include:

• The state pension to be frozen for three years and thereafter to rise by CPI inflation, in the process abolishing the state pension triple lock, alongside longer-term reforms to public sector pensions and raising the state pension age to 70.
• Working age benefits to be frozen for three years, and thereafter to rise by CPI inflation (in line with pensions), alongside broader systemic reforms to reduce the number of people claiming out of work benefits and personal independence payments.
• Reforms and efficiencies in the NHS, including ending national pay bargaining and introducing a small fee to visit a GP.
• Cutting the cost of the civil service and other arm’s length bodies by 25%, alongside implementing improved working practices.
• Reversing the recent unaffordable increases in childcare and free school meal eligibility, eliminating some green subsidies as part of a less rushed pathway to Net Zero, reducing the number of university places and further reducing international development spending.

The report advocates using half of the proceeds to reduce the deficit, a quarter to finance increases in other sorts of public spending, principally defence and law and order, with the other quarter being used to reduce taxes. Eventually, the aim should be to reduce taxes by a substantial amount – but this should not be attempted until the public finances are stabilised.

The launch of this report was covered by:

• City A.M. (Print)
• The Times
• Financial Times
• The Daily Mail
• City A.M. (Online)
• The Express (1)
• The Express (2)
• BBC Radio 4 Westminster Hour