Richard Murphy predicts that the Conservative Government’s economic plan will cause a recession.

To summarise the Tory economic promise is easy. As Martin Wolf has put it in the FT the policy means that:According to the International Monetary Fund, the share of government spending in UK gross domestic product will fall from 41 per cent in 2014 to 36 per cent in 2020.

We all know that this is not necessary: as Paul Krugman and many others have pointed out not only is there no need for austerity, and, as I have often argued, cutting government spending at a time when consumers are not racing to the shops, business is pulling back on investment plans and the trade deficit looks dire, is a simple guarantee that not just the state will shrink but the economy with it.

Source: Tax Research UK » The key economic questions the Tories must answer