How much more will the government have to borrow next year?
Does it matter?
Yes it does.
The government only has one policy to get out of this mess – spending more. They will spend and spend, to the limits of their ability to borrow and print it.
There is one huge problem with this. We have to pay the money back with interest. It’s just one enormous delayed tax bill.
I am all in favour of paying some tax to make sure we have enough good teachers, nurses and doctors, and to make sure the disabled are looked after and the unemployed have some help
I am not in favour of paying more tax to make sure the bankers have their bonuses, the spin doctors can lie some more to us, the quangos can carry on regulating the wrong things in the wrong way. I am not in favour of unelected regional government, a lot of quango government, and the growing army of officials intruding into our daily lives. That does not make us richer, it makes us poorer. If we have to borrow to pay for it, it is even worse. The government should get a grip on it now, before we drown in a sea of debt.
The Chancellor wrongly told us that he would only borrow £78 billion this year, and many in the media have obligingly reported that, seeing next year as the difficult high borrowing year. The actual figures the government published said they would borrow £157 billion THIS year, or well over 10% of our National Income. It now looks as if next year could be even dearer. All of these numbers of course are dwarfed by the huge liabilities now heaped on the taxpayer by the government’s irresponsible approach to supporting the banks.
Taxpayers are standing behind more than £500 billion of casino bank. How much more will that lose before they call time on it? Taxpayers are standing behind mountains of corporate and mortgage debt. How much more are we going to lose on that?
The authorities refusal to cut interest rates and ease money in the summer and autumn of 2007 will cost us dearly. This site called strongly for a different policy at the time. As the authorities persevered with driving by looking in the rear view mirror, it was bound to be a big crash.Recent news on the state of the real economy shows how big it is. That in turn means a further nose dive in tax revenues.
Still the BBC said this morning the Chancellor is “doing his best”. I don’t recall them saying that about Conservatives. The question they should have asked, if that is their view, is “Is his best good enough?” And “Can we afford it”.