"29/11/11: a turning point in British history".

So writes Newsnight’s economics editor. “Yesterday’s Autumn Statement will set the political tone of the decade: it will tie the hands of future governments; and it has already brought a philosophical debate on the British right to an abrupt end. Within six hours of their tight-lipped ordeal on the government benches, Lib Dem MPs heard Danny Alexander pledge them to go into the 2015 election fully committed to £30bn more austerity than they signed up for in the Coalition Agreement. ….Plan A, in short, failed. It failed because the eurozone did begin to slow, and confidence was hit, and so exports – having surged – will not surge much more. But also because the very survival mechanism adopted by the Bank of England – near-zero interest rates, QE and talking down the pound, which has produced and maintained a 20% fall of sterling against world currencies – led to imported inflation. This has hammered the spending power of a workforce whose wages have been pinned to the floor, even in the weak recovery phase.”