In 1997 Tony Blair's election campaign manifest pledged “New labour will be wise spender’s not big spenders” The country voted them into power and they began the process that has put us where we are now.
After his first term (2001 election) Tony realised that to stay in power after the next cycle he could just buy votes. He must have been laughing his head of as he just borrowed money and taxed us so that he could be seen to give us more. He actually used voter’s money to buy more votes and got away with it. Here is how it happened
At the end of 2001 Government debt was at £315B
In 2001/2 the government received a one off £22B from the sale of mobile phone licensee, like children in a sweet shop they spent it and borrowed some more.
End of 2005 Government debt was at £467B
End of 2006 it was at £504B
At the end of March 2008 UK national debt was £614.4B
At the end of August 2008, UK National debt was £637.4B (£637,400,000,000)
The cost of paying interest on the government’s declared debt is at least £32B (£32,000,000,000) a year. This is more than the entire military spend for this year.
They have already committed to borrowing a further £42B over the next year and based on previous performance will increase this further.
However when Gordon has added up how much debt he and Tony have got the government into he has forgotten to include a large number of liabilities, he has only counted the cash that is owed to the private sector.
The Centre for Policy Studies argues that the real national debt liability is actually £1,340B otherwise known as £1.3 Trillion or £1,340,000,000,000
The following is quoted from the Daily mail website so should be read with caution
“Gordon Brown has been accused of covering up the true scale of Britain's national debt which research claims is three times higher than the Government admits.
A new study claims that public debt is a massive £1.3 trillion, equivalent to £53,000 for every household in the UK.”
So if you have read this then you can probably pick holes at the odd bit, statistics after all can always be corrupted however you can not argue that Brown’s borrowing is not out of control.
Maybe his reason for lowering interest rates was not to help the people maybe it was to reduce his own interest payments (£32,000,000 a year in inetrest and rising is after all quite a stone to have hung around your neck).
The problem we face now is that this short term solution of lowering interest makes people think that Brown has rescued them from a worldwide recession. In fact it does the opposite it trashes our currency. The pound dropped to its lowest ever against the Euro yesterday and looks like it will continue to fall. Brown continues to borrow.
When we kick him out the poor bloke who takes over will be starting the race from so far behind that it will take decades to fix what labour have done.
The most frustrating thing is that as bad as Tony was, he was voted in. Him and Cheri lied and the British people fell for it. Just as we laughed at the Americans voting Bush into power, the rest of the world has been watching with amusement at us voting and then keeping Tony in power.
Gordon however has never been elected by the people of GB he just assumed the role of Chief Spender.