The Grim Reality of Austerity

In 2010, public sector pay for the previous few years have been going up by more than private sector pay. So there was some opportunity there, if you like. The public's spending had grown very rapidly in the years up to 2010. There was more scope. And I think it's harder now, but you all still faced with the sort of reality, a country that is poorer than it thought it was. That's the grim reality. We always fall into thinking of austerity as being spending cuts. Actually, austerity means balancing the gap between what you're bringing in and what you're spending. You can do it via tax rises. That is the other way round"