Spending must be cut, say economists

TOP economists warn the Government will have no option but to cut spending next year if it is to keep borrowing in check.

With tax revenue growing at about 8%, the reality is that to spend more than that the Government will have no option but to borrow excessively next year and risk breaching EU guidelines.

Current spending is running at close to 20% instead of the 14.5% target for this year, while tax revenue remains way off target.