Labour will "cut deeper than Thatcher" posted by Richard Seymour

Alistair Darling admitted tonight that Labour's planned cuts in public spending will be "deeper and tougher" than Margaret Thatcher's in the 1980s, as the country's leading experts on tax and spending warned that Britain faces "two parliaments of pain" to repair the black hole in the state's finances.

The Institute for Fiscal Studies said hefty tax rises and Whitehall spending cuts of 25% were in prospect during the six-year squeeze lasting until 2017 that would follow the chancellor's "treading water" budget yesterday.

Labels: cuts, jobs, neoliberalism, new labour, public spending, recession, tories