Labour should be ashamed about debt (From Harrow Times)

Labour should be ashamed about debt

10:50am Friday 27th August 2010 in

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The coalition Government is battling to eliminate a £150 billion deficit bequeathed by Labour to the nation. How important is it to get this under control?

Moody’s, the aptly named US credit rating agency, said the world had changed since Europe’s debt crisis. None of the large sovereign states can still assume it is credit-worthy.

Britain has the safety cushion of long debt maturities, but the structural deficit is causing debt “to grow at an unsustainable rate”: the UK is clearly one of the weaker countries.

The Institute of Fiscal Studies looked at the deficit reduction plans of all three parties before the election, finding that the Conservatives’ plans proposed the lowest level of total borrowing and concluded that: “The Conservative plans imply total borrowing of £604 billion over the next seven years.

“Assuming no further change in borrowing beyond 2017 to 2018, we project that the Conservative plans would return Government debt below 40 per cent of national income in 2031 to 2032.”

So if all goes well, it will take a staggering 22 years to restore the public finances to their pre-Labour state. Great Britain has been brought to its knees by Labour.

Gareth Thomas and Labour should be thoroughly ashamed.

Pravin Seedher, Hawthorn Drive, Harrow