Amidst all the talk of billions and trillions the truth is often a casualty. Few in the public debate seem to grasp the overall numbers, or see how the adjustment to lower borrowing will in due course be made by forecast higher tax revenue. It might be helpful to set out the Uk figures expressed as so much per head. I have based all these numbers on a UK population of 62 million. The numbers beneath are the averages for every man, woman and child in the country.
The UK this year is estimated to earn or produce £22,984 of income per person, before public borrowing and associated spending is added on.
The public sector will account for half of this , or £11,451 spent per head.
We will pay £9065 of tax on average.
£1968 of public spending will be paid for by borrowing. The balance is paid for from other receipts.
The current debts, unfunded public sector pension liabilities, and bank liabilities owned by the government amount to more than £50,000 each.
The additional debt of £1968 each adds another 8.5% to total Uk spending, and an additional 17.2% to public spending. In other words, if the government manages to get borrowing down to the target level this year it will be borrowing one pound out of every six it spends.
This will be an improvement on 2010-11, when the government borrowed one pound in every five it spent.
Tax rises from £7,900 in 2009-10, the last Labour year, to a forecast £10,677 in 2014-15. That’s an increase of 35%.