What is austerity and is it ending? Definition and meaning of the term widely used in UK politics

AUSTERITY is a phrase that’s been bandied about in the news for the past ten years - but Chancellor Philip Hammond has said the end of austerity is in sight.

Here's what you need to know about austerity and what it means.

What is austerity?

Now and again there comes a point when we realise we are spending too much.

We’ve maybe taken out too many loans and now have to pay them back.

Our own austerity measures are then put in place to make sure we get a grip.

Time to look at what we can cut back.

No weekends away, less restaurants and pub visits.

For many it means beans on toasts for tea.

It much the same for a government - kind of.

What does austerity mean when is it used by politicians?

In 2007 the UK experienced its worst financial recession since the Wall Street crash of 1929 and this is at the root of the country's financial woes.

The Labour government - which was arguably already too generous with its spending - was forced to bail out the country’s banks to avoid complete financial meltdown.

In the end some estimate £540 billion was tossed to the banks. Shortly after another £50bn was handed over.

This on top of growing public spending meant the country was soon facing escalating debt of more than £1 trillion.

If it did not deal with the problem it would waste billions in paying interest.

So in 2010 the Tory and Liberal Democrat coalition launched an austerity programme to lower spending and start controlling debt once and for all.

Services provided by local authorities bore the brunt of the cuts.

By 2010 270,000 public sector jobs had disappeared and those who kept their jobs had to endure a pay freeze.

Libraries, day centres, youth centres also shut up and down the country.

Welfare benefits were also cut and food banks began appearing.

Following the Conservative Party’s disastrous election result in June 2017 many senior Tories began calling for an end of austerity after the policy failed to tackle the nation’s debt as had been hoped.

What did Philip Hammond say during Budget 2018?

In his opening remarks for the Budget 2018 on October 29, the Chancellor said: "Today I can report to the British people their hard work is paying off and the era of austerity is finally coming to an end."

The Chancellor vowed to back "the strivers, the grafters and the carers who are the backbone of our economy" as he laid out his tax and spending plans for the next year.

Speaking in the Commons, Mr Hammond said: "I present a Budget for Britain's future that shows the perseverance of the british people finally paying off.

"For hard-working families, people who get up early every morning to drop their kids off at school.

"The strivers, the grafters and the carers who are the backbone of our economy."

Mr Hammond has said that if we crash out of the EU without a deal, he will hold an emergency Budget aimed at shoring up the economy.

But No10 insisted that the announcements made in the Budget today would apply whether or not Britain strikes a deal with the EU.

Theresa May's spokesman said: "We are focused on delivering irrespective of Brexit, starting with today's Budget which locks in the progress we have made.