Daily Archives: June 18, 2010

David Miliband has rightly been commended for setting out some detailed economic policies to tackle the deficit, including his optimal 2:1 mix of spending cuts to tax rises.

But he has also been criticised for tacking to the left. Danny Finkelstein even argued “he wants to raise tax by 60 per cent more than the Coalition intends”Read more

Our front page story today put a number on the economic costs of David Cameron’s promise to bring net-migration down to the level of the 1990s.

If the Tories hit their immigration target next year, it will stunt growth and cost the exchequer around £9bn a year by the end of the parliament, at least according to the government’s own forecasting model.

We’ve had a few questions (including from the Home Office) about the detailed workings, so here’s a rough guide to Chris Giles’ workings for those confused civil servants and other economics geeks.

The basis of the calculation is this chart, which breaks down the Office of Budget Responsibility model for trend growth.

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