DAVY VIEW

Chancellor of the Exchequer Jeremy Hunt looks set to deliver a £54bn package, worth 2% of GDP, of tax rises and spending cuts in tomorrow’s Autumn Statement. He will face a trade-off between immediate measures that rein in borrowing but depress the UK economy and less convincing plans to defer spending cuts until after the next general election. The move to freeze public spending in real terms may well be most contentious, questionable that it can be delivered given the growing demand for public services and political opposition.