George Osborne’s £81bn package of spending cuts to reduce the UK’s debts has been described as “courageous” by a leading international organisation.
The Organisation for Economic Co-operation and Development has welcomed Osborne’s spending review – announced on Wednesday – as a “necessary step towards achieving long-term fiscal stability”.
The praise contrasts with stinging criticisms from the Institute for Fiscal Studies, which has labelled the cuts as regressive.
OECD secretary general Angel Gurría says: “Budgetary consolidation is never easy but the timing and scope of the measures balance concerns for near-term growth with the need to stop the snowballing of debt and to preserve credibility.
“The measures are tough, necessary and courageous. Acting decisively now is the best way to secure better public finances and bolster future growth.”