A leak from Whitehall suggests that tomorrow's budget, unveiled by chancellor George Osborne, will see an extra £2.5bn of spending on capital expenditure projects. The funds will come from further cuts to government departments. Allister Heath has written on the failed thinking that supports a big boost in public sector spending:
Too many are uninterested in the composition of demand – private or public – assuming it is all the same. It isn’t: private spending is more efficient than public spending, and governments with high levels of state spending as a share of GDP grow less fast, according to many studies.