DROWNING UNDER A SEA OF DEBT!
In 1997, when Gordon Brown became Chancellor, the national debt was £5b say Harris & Co accountants Northampton. It had taken Mrs Thatcher 18 years to get the debt down to this level after the profligacy of the Labour Government in the 1970’s.
Gordon Brown then embarked on a spend and borrow binge, declaring that it was “prudent” to borrow up to 40% of our national income. He said that this was his “golden rule” that he would never, ever break.
Well he hit the 40% limit in 2007-08 as spending and borrowing ran away with themselves and hit £300b. By 2010 borrowing had ballooned to £600b.
The Coalition Government came to power and promised to get the debt under control by “cuts” and “austerity”. In fact since 2010, the national debt has risen to £1200b!
Hidden in the recent Budget details were some interesting statistics.
The Treasury estimate that it will take us until 2035 to just get the national debt back to where it was in 1997.
We are spending more on debt interest payments than we do on defence.
Interest on our debts is about 50% of what we spend on the NHS.
Heaven help us if interest rates go up!!