Economists split over spending cuts

A group of 60 leading economists in the UK have written to the Financial Times today supporting the UK government's plans to delay public spending cuts until 2011. This comes hot on the heels of a rival group of economists who slated the government's plans and appeared to side with the Conservative party. So what is best for the UK economy?

There is no doubt, as all parties admit, that a reduction in public sector spending is inevitable in the short to medium term but the UK government argues a reduction in spending now will push the economy back into recession while the Tories believe the issue should be addressed immediately. The truth is that while UK national debt continues to rise it is the performance of the UK economy which is more vital in the short to medium term. Once the economy is back on its feet it would be easier to push through spending cuts although in the meantime perhaps some of the "fat" should be trimmed from the public sector budget?

The very different opinions on public sector spending from the Conservative party and the government will polarise voters at the general election - something which appears to be the main weapon which the UK government has at its disposal.