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Tackling the deficit 'will take six to seven years'

Tackling the UK's large budget deficit could take between six and seven years, it has been suggested.

Tony Dolphin, senior economist at the Institute for Public Policy Research, explained that there is no room at present to deal with another economic slowdown.

His comments come after research by the International Monetary Fund concluded that the UK is constrained with regards to fiscal manoeuvre because of the run-up in public debt expected in the years ahead.

Mr Dolphin said he agrees with the group's assessment, as the UK is already borrowing at such a high level that it would not be possible to support the economy if it dipped back into recession.

"There's no room to cut taxes, there's no room to increase public spending," he stated. "I don't think that is a particularly stunning conclusion, we all know that."

He said the government is hoping to bring the deficit under control in "a couple of years" but claimed this is an optimistic goal.

"It will be six or seven years before we are in a position to deal with a very serious slowdown of the sort that we experienced in 200-09," the economist remarked.
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