Thursday, 23 July 2009

Public sector debt hits nearly £800bn

Figures out earlier this week showed that public sector borrowing has now soared to £798.8bn, equivalent to a record 56.6% of GDP.

The perverse and increasingly dishonest debate between the three main parties is how about how to cut out-of-control public spending - with public sector pensions, student grants, welfare, the fire service, Royal Mail, and a whole host of other useful items being bandied about without any consideration of why they exist now.

However, public spending in the year to June rose only by 0.9 per cent in real terms. Public spending is not out of control. We are in debt because of the bank bailout, and because of falling tax receipts.

If cuts are needed, then we should be happy to identify them: Trident and ID cards would be a good start. The 'Our Taxes, Our Lives' campaign is making exactly that point.

There's also a good article from Wednesday's Morning Star, 'Public spending is not to blame'.

2 comments:

Smith said...

While people may have different views still good things should always be appreciated. Yours is a nice blog. Liked it!!!

Purple said...

The financial crisis is turning out to be a large scale transfer of wealth.