Tuesday, Jul 21, 2009

Spending will have to be slashed in order to balance the country's books.

The Times: Labour under pressure as borrowing hits £13bn

Britain's debts surged in June as dwindling tax receipts hit the Government coffers, nearly doubling public borrowing to £13 billion.
The rise in borrowings, up from £7.5 billion last June, took public sector net debt to £798.8 billion, equal to 56.6 per cent of GDP - the highest level since records began in 1974.

Posted by devo @ 10:11 AM (389 views) Add Comment

2 Comments

1. tyrellcorporation said...

IMO Labour isn't under any pressure whatsoever. They'll do anything to win the next election and as that now seems highly unlikley they are hell-bent on destroying the economic landscape to make life as hard for an incoming Conservative administration as possible. They have nothing to lose which is a dangerous situation for the country. The yawning chasm in the public finances will be papered over until after the general election and then all hell will break loose. This structural problem (rather than the glitzy, media freindly 'credit-crunch' problem) is now the main reason why I'm holding off a bit longer before buying a house. Putting the public finances back in order (higher taxes and cuts) will be an extremely painful process and one which Labour will never have the guts to do. In an almost uncanny reapeat of the late 70's the Conservatives will be voted in to clean up the mess and in all likelihood we'll have another recession as the harsh medicine takes effect.

Tuesday, July 21, 2009 11:48AM Report Comment
 

2. bidin'matime said...

Back to the 1970's indeed - and my sons will then be able to afford a house, like I could back then...

Tuesday, July 21, 2009 02:48PM Report Comment
 

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