I'll rephrase it a little then. I want George Osborne to explain why he has borrowed more in the last four years than the last administration did in thirteen and why he feels it acceptable to lie to the public by telling us everything is getting better and that he has borrowing under control. While he's on he can also add how his deficit reduction plans are failing and why
Simple economics my friend.
Gordon Brown inherited a growing economy in 1997 and kept to the Tory spending plans for 2 years, the economy from 1999 to 2005 was growing ahead of forecasts so he could spend and spend and spend.
In 2005 the Treasury warned GB that tax receipts were falling and the Government should slow public spending (allocating 3% wage rises across the public sector for a decade doesn't help). Gordon Brown ignored the warnings believing that growth would return, but in 2007 the crash occured and surprise surprise the deficit began....
2001 is the only year during New Labours tenure in Government which they actually paid off any debt. All the other years was simply interest payments on the debt mountain.
The situation now, as was in 2008 onward is rather stark - either reduce public spending by about £70 billion - so thats all education spending AND military, or raise taxes..... now look over the English channel to France and they have done the latter and what's happening to their economy.
And just remember Ed Balls has stated that if Labour win in 2015 they will stick to the existing Governments spending plans so don't vote for them thinking there is a pot of Gold about to be opened and spread around.....
Tax receipts come from Income tax, VAT and corporation taxes, so you and I get taxed more, VAT is reliant on spending and any shift to increase corporation taxes will only work for UK based companies - why do you think so many companies have their HQ's in the Camen Islands, Luxembourg, Ireland etc??
Anyone promising to tax international companies is unlikely to increase tax receipts...
There are no easy answers and your mates in Labour don't have any better ideas than the current lot. They are ALL BOXED in.
