Monday, June 14, 2010
Over the weekend Alistair Darling said he hoped David Cameron and George Osborne would apologise if the size of the debt announced today was not as great as they had said during the election.
Wonder if he will now do the same seeing as his growth forecast from his last budget has now been downgraded. As the size of the structural deficit is also predicted to rise from Darling's prediction of 7.3% of GDP to 8.0% it appears that rather than the Conservatives misleading over the debt it has been Labour doing just that. The structural deficit which of course Vince Cable also warned about is actually the toughest part of the national debt to be dealt with.
The only small, and I emphasise the word small, grain of hope for Darling is that the overall net government debt will be 62.2% of GDP in 2010-11 from the previous estimate of 63.6%. If Mr Darling is going to rejoice over that small reduction he will merely be fiddling while the UK burns under the financial mess that his party have presided over.
Posted by Stephen Glenn at 11:12 am