Saturday, July 19, 2008
Darling to cut spending, but still increase borrowing!
Taxpayers are at the limit of what they are willing to pay to fund public services says Darling. Darling warned that the downturn was far more profound than he had thought and could last for years rather than months. He told Cabinet ministers this week that there would be no more money for schools, hospitals, defence, transport or policing. Tax receipts are falling but unemployment costs are on the up! He confirmed that the Treasury was revising its rules to allow more borrowing. His disclosure came as figures showed that public borrowing rose by £9.2 billion last month, well above City forecasts of £7 billion and the highest for June since 1993, when monthly records began. He said Britain could still be suffering by the next election, expected in 2010.