The Con Dem Addiction to Austerity

Jonathan White, writing on the Compass website, examines why - despite the overwhelming evidence that austerity measures are failing on their own terms - the UK Government persists with cuts to public spending and privatisation policies: 'austerity policies function as an ideological cover for a new wave of de-regulation, privatisation and outsourcing in favour of the public services industry...

'The growth of large companies like A4E, Care UK, G4S, ESG, Capita, winning major contracts in privatised health and social care, the Work Programme or through the government’s de-regulation of post secondary education and training is fuelled by investment banks and private equity funds. In addition, the same banks are now lobbying the government to replace the politically unpalatable PFIs with ‘social impact bonds’, allowing them a new way to extract profits from the financing of infrastructure'
http://www.compassonline.org.uk/news/item.asp?n=16558