A 25% cut in public spending would seem extreme in midst of a deep recession like the one we have today. But the new conservative Prime Minister of Britain is planning on cuts far deeper than that.
David Cameron is ready to approve the biggest public-spending cuts in the history of the developed world in a dramatic bid to cut Britain’s soaring national debt.
He has ordered Cabinet Ministers to draw up ‘Doomsday’ savings of up to a staggering 40 per cent which could see vast parts of the public services shut down and tens of thousands of policemen, teachers, town hall workers and other civil servants lose their jobs.
The proposed cutbacks are even more extreme than emergency reductions used in other countries such as Canada and Ireland and are double the amount of the Geddes cuts imposed after the First World War when Britain faced bankruptcy from government debt and waste.
That doesn't mean that Britain will actually cut public spending by 40%. The alternative plan is to cut public spending by 25%. The 40% cut is probably being held out as a threat.
But if the 40% cut becomes reality then the level of austerity in Britain could create civil disorder.