BRIGHTON, England (Reuters) - Britain should keep its mix of spending cuts and tax rises in the next phase of austerity, the Liberal Democrat junior coalition partners said on Wednesday, raising a possible stumbling block to joining any future Labour-run government.
The government’s 2012 budget called for 49 billion pounds ($80 billion) of extra savings in the two years after 2015, with the share of spending cuts rising to around 80 percent over the seven-year era of austerity.
“It’s too early to say precisely what the detailed policies will be but I think the mix of tax and spend that we’ve set out in this parliament is broadly right and I wouldn’t particularly want to deviate hugely from that in either direction,” Lib Dem Treasury minister Danny Alexander told Reuters in an interview.
Alexander said that growth had been far lower than hoped. and that the wealthy should pay more, for example with a tax on expensive homes, to help reduce the budget deficit.
Reporting by Matt Falloon and Tim Castle; editing by Guy Faulconbridge