Friday, September 26, 2008

Scorched Earth


A world of pain

As Mr and Mrs Tyler pack for their autumn minibreak in Birmingham, the BBC has swiped Alan Duncan for suggesting the Tories will inherit a fiscal wasteland from Gordo & Co. Apparently, that's triumphalist and taking the electorate for granted.

Dontcha just love the BBC?

Especially since Duncan is quite right about the fiscal outlook: with only months to live, Labour are going to incinerate the public finances. That fairweather 40% debt "ceiling" has already been blown by the Crock debt, and as the recession bites, borrowing will soar.

So with net public sector debt already standing at 43.3% of GDP let's just remind ourselves of some historic benchmarks:


  • 53.8% - the highest ever recorded peacetime level, racked up by the last Labour government in 1975-76
  • 43.9% - the level bequeathed to the Tories by Callaghan's government in 1979-80
  • 41.3% - the level bequeathed to Labour by Major's government in 1997-98

Looking forward, the recession... more bank bailouts... emergency tax cuts... by 2010-11 Tyler reckons the debt percentage could easily be pushing 50%.

It's a fiscal disaster. George will inherit nothing more than a smoking patch of bare blackened earth.

Oh... but then... umm... wonder what happens to sharing the proceeds of growth?

Let's hope he's got some ideas.

PS Depending on operating conditions, posting from the Tory Conference may be sporadic.

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