Sep 2008 22

When you're in a hole, stop borrowing4

PickpocketsAnyone reading the Express this morning is more than likely to choke on their cornflakes at the sight of the £900 extra we’ll have to pay in tax to cover Brown’s impending borrowing and spending spree. 

Trying to buy his way out of trouble, Brown is heading for another budget binge designed to provide new childcare places in nursery schools and other ‘investment programmes’ which will only serve to increase the size of government.  Look at it like this: under Labour the amount government spends has doubled.  They spend £80,000 a second of your money.  Are you satisfied that the doubling of government expenditure has gone to better public services?  I didn’t think so.

In an astonishing sign of detachment from reality Brown admitted “it is right to borrow and raise public expenditure”.  Rising unemployment means fewer NI, income tax and other tax receipts gained through employment.  A gradually increasing unemployment benefit roster means fewer is coming in yet more is leaving Treasury coffers in handouts.  So, with less coming in, Gordon wants to spend more.  Clearly it’s the economics of the strait-jacket.

But Brown is in the bunker and resorting to what Labour does best (or worst) – spending your money.  Yet this strategy is entirely New Labour.  Slyly borrowing to fund spending increases, they lack the political guts to hike up taxes now to pay for current spending which will come crashing down as a tax will bill we’ll all have to pay when the debt needs to be paid off.  On the one hand the Government berate banks and city traders for ‘irresponsible’ lending and dealing.  On the other, with a barefaced cheek, they concede to borrowing more to ratchet up spending.  Gordon talks – you pay!

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  • Graeme Pirie

    It seems quite clear that Brown knows he’s out at the next election so is deliberately creating a mess for the tories. He’ll spend, spend, spend forcing the tories to raise taxes and cut spending in the future.
    No doubt he hopes spending more will fool enough voters to increase his ratings a bit. Complete personal interest.
    Bankrupting the country for a few points is disgusting behaviour for any government.
    We can only hope that there are a few decent labour backbenchers who will act to stop this despicable behaviour.

  • Damian Hockney

    …and of course what they should be doing is committing to reduce waste and/or ‘non-essential’ programmes – but it is a sign of how detached politicians have become that no-one appears able to identify these non-essential programmes or take firm action when they do. The new London Mayor is a classic case who is blundering, albeit with charm and good intentions, into more bloated government spending. A minor example of his reverses already? He had promised to stop involvement in the Mayors for Peace boondoggle…which commits members to promotion, publicity and doing things (all of which cost money in staff and paper and print and meetings). it costs to print leaflets. It costs to stage a meeting. It costs to commit staff time to something. But now he’s reversed that promise. It’s not just Labour, sadly. Take a tip from this former London Assembly Member – just watch the Tory Mayor at City Hall spend as much (and as unwisely) as did his predecessor…

  • Stuart Mcgregor

    Many talk about regulation of the city and the banks because of what has happened and to prevent a future crash.
    However, Labour have done exactly the same thing with public spending and splurged like there was no tomorrow.
    Yet no one talks about regulating government to prevent such a thing from happening again.
    WHY NOT?

  • Richard Garland

    It is actually a very clever strategy….
    (1) The country is in a mess and it is all but bankrupt by Gordon and Darlings fiscal policy. Labour are almost certainly to lose the next general election to the Conservatives.
    (2) In the last 18-24months of your term – spend everything and more – in a blaze of publicity give everything away.
    (3) Conservatives come into power in Global recession years – realise the coffers are empty – as prudent people cut back spending and are forced to raise taxes. Unemployment rises – people are short of cash….
    (4)The General election after that Labour say – we are the party you should vote for for lower taxes and more jobs – and a booming economy. Look how we did before Tories took over.
    IE – Labour are looking to lose this election and get back in on the next – and heep all the blame on the intervening Conservative scapegoats