There are just three central figures in the Treasury Red Book which sum up this government’s 5 year plan. They are figures that very few commentators and journalists seem to want to understand.
If you compare 2014-15, this government’s last planned year, with the last year of Labour, you should expect;
Public sector current spending up by £92 billion or 15% – a small real increase if inflation is 2% or less – that’s £11,500 per head instead of £10,000 per head, or £46,000 for a family of four
£176 billion more collected in taxes in Year 5 – that’s around £12,0000 extra for an average family of four
£451 billion more borrowed over the lifetime of this Parliament – that an increase in the public debt larger than the total debt inherited by Labour in 1997.
It’s difficult to say this is unduly mean on the public sector, given the huge deficit and rising interest rate bill.
An extra £451 billion of debt means extra interest payments of around £13.5 billion a year if interest rates stay as low as they are currently.
The main winners in gaining extra spending are the EU budget, Overseas Aid, Debt Interest, Pensions, Health, Schools and Equitable Life holders.