When the ConDems opened the books, the deficit was worse than Labour had admitted, which is why we have to make deeper cuts.
“Because the structural deficit is worse than we were told, my budget today implies further reductions in departmental spending of £17bn by 2014-15.”
(Source – Osborne Budget Speech, 22 June 2010)
Far from things being worse, the deficit turned out to be £7bn LOWER than Labour had predicted – Darling’s measures were already having a positive impact.
(Source: Office for National Statistics April 2010 report, published June 2010 (PDF) – see Telegraph story for explanation and comment)
Note: The “structural deficit” is a subjective concept – it has no impact on departmental spending. Robert Chote, then Head of the Institute for Fiscal Studies and now Head of the Government’s own Office of Budget Responsibility said Osborne’s detailed figures on this concept were “spurious”
See here for details of how misleading Osborne is being.
From Howard Dawber