Saturday, 27 March 2010

The day Gordon Brown settled our fate

"By 1997, public spending stood at £322 billion. After Mr Brown's 1998 Comprehensive Spending Review, it was projected that it might almost double, over 10 years, to more than £600 billion. So it turned out. The public sector exploded in every direction, as these additional hundreds of billions began flooding into health, education, social benefits – and into the inflated salaries and pensions of our new lords of local government. ...And now we begin to see the consequences. As public spending rises this year to £661 billion, more than a quarter of it is having to be borrowed, giving us a larger public sector deficit than Greece, the country having to be bailed out by the IMF.

The overspend is so colossal that the Government itself predicts that in just four years' time our national debt will have doubled, to £1.4 trillionequal to our present annual national output. And if our international credit rating is downgraded, as seems very possible, we will have to pay even more to borrow the money. According to the Institute for Fiscal Studies, we may soon be shelling out some £74 billion a year – £60 a week from every household in the land – not to reduce our debt, but simply to pay the interest."

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