Clearly, Gove is just not right wing enough.
has been welcomed by Tory MPs.
Chilling. These are its conclusions:
Government spending is over 50 per cent of national income. Spending grew steadily in the twentieth century and then experienced very rapid growth from the beginning of the 21st century.
• Much government spending discourages economic activity and prevents innovation and competition in crucial sectors such as health and education. Furthermore, government intervention is incoherent. For example, government spending and implicit subsidies strongly encourage certain carbon-intensive activities; other forms of government spending are then used to try to reduce carbon-intensive energy generation.
• the recent Comprehensive Spending Review was anything but comprehensive. Certain departments were omitted from the review altogether. Most other areas of spending were ‘salami sliced’. No coherent, bottom-up analysis of government functions has taken place. the government could achieve its main public policy objectives at much lower levels of spending if there were to be a radical review of all aspects of spending.
• even if the coalition achieves its objectives, there will be only modest reductions in government spending. Nominal spending will rise, real spending will be cut by less than 1 per cent per annum and spending as a proportion of national income will fall back only to 2007 levels.
• A complete review of government functions could, as a first step, lead to cuts in underlying government spending of £242 billion in addition to the government’s proposed cuts. Using the government’s definitions of government spending and national income this would amount to a cut of £215 billion to around 29 per cent of national income.
• Government spending – even in areas such as research and development, investment and education – has little or no beneficial effect on economic growth. the taxation necessary to fund government spending, however, seriously and adversely affects economic growth. A reduction in government spending of the order suggested by our authors would lead to economic growth increasing by more than 0.75 per cent per annum: this would mean that national income would grow by an extra 20 per cent every 25 years.
• Much government-owned infrastructure can be privatised; marketbased solutions to transport urgently need to be adopted with a consequent elimination of government subsidies; and climate change policy is currently incoherent. Huge savings in government spending are possible in the field of climate change policy even if the government wishes to retain incentives to reduce carbon emissions. Over £80 billion a year could be available for tax decreases from the proposals made in these areas.