This lack of growth is equal to a hit of £1500 per person per year. Austerity means the economy is £99.4bn smaller in 2018/19 than it otherwise would have been.
The analysis also found austerity forced citizens to take on extra borrowing themselves while also exacerbated existing economic imbalances.
The goal of reducing the deficit by cutting spending has been proven ineffective as lower tax receipts due to suppressed GDP have in turn contributed to numerous missed borrowing targets since 2010.
The isolated effects of austerity to come are also expected to suppress GDP by a further £18bn, £117bn per year in total by 2022/23 (2018/19 prices).
Alfie Stirling, Head of Economic at the New Economics Foundation, said:
“At this time of
yearthere is often renewed speculation over whether the Chancellor will meet his year-end deficit targets by March. But for 9 years, the elephant in the room has largely been missed: the sheer scale of economic damage that these targets have contributed to in the first place. The big picture here is that the livelihoods of people and communities have been made more bleakas a direct consequence of active government decisions. This should not be allowed to happen again.”
Analysis from Iwan Doherty- Editor in Chief
The human impacts of austerity have always been known to the majority of the electorate but what always frustrates me is how few voters know austerity and the government’s fiscal policy is awful economic management. Labour’s plans are not radical, they conform with all economic consensus.
The media has allowed the Tories a free ride on economic policy and it is time for Labour to explain that their economic program is the safe secure option.