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from The Great Debate UK:

Is it safe to make cuts in the current economic climate?


-Ian Ellis is executive chairman of Telereal Trillium. The opinions expressed are his own. Join Reuters for a live discussion with guests as Chancellor George Osborne makes  an emergency budget statement at 12:30 p.m. British time on Tuesday, June 22, 2010.-

The government is clear that reducing the public sector budget deficit is top priority and Tuesday’s budget will give us our first real indication of how and where public spending cuts are going to occur.

While there’s a consensus about the need to reduce debt, opinion is greatly divided over whether it’s safe to make these cuts in the current economic climate, with some commentators suggesting that deep cuts could bring about dangerous consequences such as job losses, damage to frontline services and even the possibility of a double-dip recession.

The dilemma is clear – how can wide-ranging cuts be made without hurting frontline services or the economy as a whole, without making redundancies and without causing public outrage?

This may hurt a little


Britons are being prepared for the hardest of hard times. Prime Minister David Cameron has warned the public that they will feel the impact of deficit-cutting decisions for years and maybe even decades. Cameron justifies the pain by saying that doing nothing about debt would be disastrous and that Britain will come out of the other side as a stronger country.

His finance minister George Osborne and LibDem sidekick Danny Alexander were setting out plans on Tuesday for how to conduct this year’s spending review, with  unions, the public and the private sector asked to contribute ideas.