Osborne’s Austerity Cost UK 2% in Lost GDP, BOE Analysis Shows
- Estimate revealed in previously undisclosed 2015 BOE paper
- Analysis says Osborne austerity went further than necessary
George Osborne
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
George Osborne’s austerity program after the Conservative party came to power in 2010 cost the UK economy more than 2% in lost GDP, according to newly published Bank of England research.
BOE analysis from 2015 released Thursday showed the tight public spending plans and tax increases imposed by the then Chancellor of the Exchequer to fix the public finances after the 2008 financial crisis pulled down the level of GDP by “a little over 2%” by 2015.