real terms cut

USAGE SUMMARY

The phrase "real terms cut" is not standard in written English and may cause confusion.
It could be used in contexts discussing financial adjustments or reductions, but it would need clarification for proper understanding. Example: "The budget for next year will see a real terms cut, meaning that inflation will reduce the actual value of the funds available."

News & Media

Human-verified examples from authoritative sources

Exact Expressions

23 human-written examples

"On top of a real terms cut for Sure Start, he's cutting funding for children, young people and families by 10.9% next year.

BBC

In relative terms, therefore, a 10% real terms cut is worse.

The Guardian

And this is indeed what this deal delivers – a real terms cut.

The Guardian

Mr. Van Rompuy also promised to deliver the first budget delivering "a real terms cut" compared with the previous seven-year budget.

The New York Times

He said Osborne's austerity programme would see a further real terms cut of £12bn in funding for Scotland by 2019 – an actual rather than hypothetical threat.

The Guardian

Another real terms cut in the licence fee will inevitably lead to a loss of services or diminution in quality or both.

The Guardian

Human-verified similar examples from authoritative sources

Similar Expressions

37 human-written examples

Derek Mackay, the Scottish finance secretary, added that the capital spending increase would still lead to a real-terms cut of 8% in his capital budget, alongside a 9% real-terms cut in day-to-day spending measured against what ministers expected in 2010 they would get.

The Guardian

It is a real-terms cut.

The Guardian

Mr Cameron has just celebrated his triumph in negotiating a real-terms cut in the budget.

The Economist

And no mention whatsoever is made of the fact the changes comprise a real-terms cut.

The Guardian

He pointed out that the government had imposed a real-terms cut in funding per pupil.

The Guardian

Expert writing Tips

Best practice

When using "real terms cut", always clarify the baseline year or period against which the adjustment is being made to provide clear context.

Common error

Avoid simply stating "real terms cut" without mentioning the specific inflation index used for the adjustment, as different indices can yield varying results and confuse the audience.

Linguistic Context

The phrase "real terms cut" functions as a noun phrase, typically used as an object or complement in a sentence. Ludwig Examples illustrate its usage in describing budgetary or financial reductions, adjusted for inflation to reflect actual purchasing power.

Expression frequency: Common

Frequent in

News & Media

100%

Less common in

Formal & Business

0%

Science

0%

Encyclopedias

0%

Ludwig's WRAP-UP

The phrase "real terms cut" describes a reduction in value or spending power after accounting for inflation. This is more than a simple nominal decrease; it reflects an actual loss of purchasing ability. Ludwig's analysis highlights that it's most commonly found in news and media contexts and Ludwig AI points out that this could cause confusion, needing clarification for proper understanding. For clarity, specify the inflation metric when using this phrase, and consider alternatives like "inflation-adjusted decrease" or "actual value reduction" depending on the context. The examples show that it is frequently used in financial and economic reports.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

inflation-adjusted decrease

This alternative directly specifies the adjustment for inflation when describing the decrease.

actual value reduction

This alternative emphasizes the reduction in the actual worth or value of something.

purchasing power decline

This alternative highlights the reduction in the ability to purchase goods or services.

inflation-eroded budget

This alternative suggests that inflation has diminished the budget's value.

decline in real value

This alternative focuses on the decrease in value after accounting for relevant factors.

effective spending reduction

This alternative highlights the practical impact of the reduction on spending capacity.

price-adjusted decrease

This alternative indicates that the decrease is adjusted for price changes.

erosion of financial resources

This alternative emphasizes the gradual diminishing of financial resources.

decrease in net value

This alternative points to a decline in the overall net worth or value.

adjusted financial downturn

This alternative describes a downturn in financial terms that has been adjusted to reflect real economic conditions.

FAQs

What does "real terms cut" mean?

A "real terms cut" signifies a reduction in spending or income after adjusting for inflation. This means the actual purchasing power decreases, even if the nominal amount stays the same or increases slightly.

How do you calculate a "real terms cut"?

To calculate a "real terms cut", you need to adjust the nominal value (the stated amount) by the rate of inflation. If inflation exceeds the increase in the nominal value, there's a "real terms cut".

What's the difference between a "real terms cut" and a nominal cut?

A nominal cut is a simple reduction in the stated amount, while a "real terms cut" considers the impact of inflation. For example, if a budget is nominally frozen but inflation rises, it results in a "real terms cut".

What are some alternatives to "real terms cut"?

You can use alternatives like "inflation-adjusted decrease", "actual value reduction", or "purchasing power decline" depending on the specific context.