Author Topic: So much for cutting the deficit  (Read 8360 times)

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The Prophet

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So much for cutting the deficit
« on: October 13, 2014, 09:28:27 am »
Why you cannot believe government spin and the BBC "part-reporting" the news the government want you to hear. 
We have a "Government by announcement"  Statements are made that will attract coverage in the media bit they are not thought through or followed up.

So despite so-called "austerity" and "we're all in it together" whatever happened to "balancing the budget before the end of this parliament?"    Actually, what happened the even "reducing the budget deficit" - the amount the government spends over and above what comes in from all the various taxes.

Despite all the talk, there has been no progress at all. 
It wouldn't perhaps be that bad if the Coalition had even managed to not increase both the budget deficit and total national debt during this parliament but it hasn't.

The sad FACT is that far from cutting spending, our national debt has all but doubled since 2010 to over £1,430billion or £1.43trillion if you prefer!

Even worse, borrowing in the first six months of this fiscal year (April to September 2014) is at £57.3bn,  HIGHER than the same period last year (£53.1bn).

Even as recently as March this year, official forecasts had expected the deficit to fall by 12% in 2014/2015.
The "plan" as unveiled in 2010 was to reduce the deficit to £37bn by 2014/2015. In March the target was £85bn.
It is now highly likely that another £100bn or more will be added to the national debt.  Our budget deficit is around 6% of GDP. In the Eurozone it is 2.9% - as just about every government in Europe puts the UK to shame!

No so bad all the time interest rates remain low - another reason to stiff savers with persistently and artificially low base rate, but what happens when the desired inflation, the only way to reduce the debt in real terms, kicks in and interest rates have to go up regardless.  Even at today's ultra low rates Britain is spending more on debt interest than it spends on defence and nearly as much as on education.

You won't hear George Osborne or David Cameron saying anything more about this until after 7 May 2015! 
Do you still think "the economy is in safe hands"?