History. A UK government budget surplus in 2001–2 was followed by many years of budget deficit and after the financial crisis of 2007–2008 a period of economic recession began in the country. The first austerity measures were introduced in late 2008.

Why did Britain have austerity?

Why did Britain adopt it? The austerity measures were imposed to eliminate budget deficits that ballooned to unsustainable levels in the aftermath of the financial crisis. But Conservative Party leaders also sold budget cuts as a virtue, ushering in what they called the Big Society.

Why was the 2010 austerity plan needed?

VAT tax cuts helped boost demand and provide economic stimulus during economic slump. In a recession, higher spending is required on unemployment benefits, income support. ... There is strong evidence to suggest the austerity of 2010-12 contributed to a weak economic recovery – which hurt the growth in future tax revenues.