Saturday, 28 January 2012
Don't say another word about the coalition's expenditure cuts until you see this chart
The UK government borrowed £120 billion last year. It borrowed around £150 billion in each of the two previous years. The government's debt stock reached £1 trillion in January.
Before anyone says another emotive word about cruel expenditure cuts and the need to protect the welfare state, can we at least agree that this rate of borrowing is unsustainable? Is there anyone out there who thinks that UK economy is large enough to absorb this debt accumulation?
Since we all agree that the government deficit must be reduced rapidly, let us now work out the best way to do that. Do we need to raise taxes? What expenditures need to be cut? What social services should be protected and which ones can we reform?