John McDonnell's response to the Budget November 2017

 


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  • commented 2017-12-14 11:40:49 +0000
    Is it not time that the Labour party started to demolish the Tory image of economic competence?
    In the 2010 budget, George Osborne promised to clear the deficit by 2015, this is what he said at the time.
    “Reducing the deficit is a necessary precondition for sustained economic growth. To continue with the existing fiscal plans would put the recovery at risk, given the scale of the challenge. High levels of debt also put an unfair burden on future generations”.
    “The Government has therefore set a forward-looking fiscal mandate to achieve cyclically adjusted current balance by the end of the rolling, five-year forecast period”.
    http://webarchive.nationalarchives.gov.uk/20130103003218/http://cdn.hm-treasury.gov.uk/junebudget_complete.pdf
    UK GDP in 2015 was £1,872,714 million
    https://www.statista.com/statistics/281744/gdp-of-the-united-kingdom-uk-since-2000/
    2010 budget forecast of debt in 2015 was, “64.4 per cent of GDP”.
    http://budgetresponsibility.org.uk/docs/junebudget_annexc.pdf
    Table C1 page 77.
    Therefore, £1.8 trillion x 67.4% = £1.2 trillion
    This should have been the maximum level of UK debt, had George Osborne managed the economy responsibly.
    He didn’t and the national UK debt is now £1.8 trillion meaning that the Tories have added around £600 billion – and rising – to the UK debt by their incompetent management of the UK economy.
    To put matters into perspective, £600 billion would pay, outright, for NHS England for about 5 years. Don’t let the Tories tell you there is no money, it was there but the Tories flushed it away.