Labour caused financial crisis

Trusted article source icon
Wednesday, September 01, 2010
Profile image for This is Nottingham

This is Nottingham

CHRIS Leslie, who boasts "it's easy to make a list of coalition damaging choices", might have more credibility if he also listed Labour's damaging choices. Near the top would be the choice to go on a spending splurge resulting in a deficit of around £150 billion.

What Labour apologists ignore is that this deficit is not a one-off but a recurring annual figure, which increases the national debt. It seems Labour would accept this deficit in 2010 before reducing it by half over the next four years.

So in 2010 around £150 billion of unfunded deficit would be added to our debt. Then, for each year until 2014, the deficit would reduce by £18.75 billion (£150 billion halved and divided by four years) so would be £131.25 billion in 2011, £112.50 billion in 2012, £93.75 billion in 2013 and £75 billion in 2014.

Thus, adding those deficit figures together, Labour would increase our national debt by £562.50 billion.

After that the annual increase would be £75 billion. That debt would be financed by borrowing, which even at current levels costs us £45 billion a year in interest.

That, rather than what Mr Leslie calls "the ideological desire to shrink the public sector", is why the coalition has to make drastic cuts.

DOROTHY WILSON Main Street Willoughby-on-the-Wolds

26
Tweet this article
Report

26 Comments

  • Profile image for This is Nottingham

    by Beak, Notts

    Saturday, September 11 2010, 7:26PM

    “Make that write!!!”

  • Profile image for This is Nottingham

    by beak, Notts

    Friday, September 10 2010, 10:42PM

    “What is more sad it idiots like you believing what you right! Grow up!”

  • Profile image for This is Nottingham

    by Ted Mc, Notts.

    Friday, September 03 2010, 5:32PM

    “Tory voting was a question based upon the knowledge that affluent areas tend to be Tory voting areas.
    It's a case of self interest, vote for those who look after the richer people in society.

    I do think it's a little sad that I have to explain the obvious to you.”

  • Profile image for This is Nottingham

    by Beak, Notts

    Friday, September 03 2010, 7:01AM

    “Haha. Now who is biased? Tory voting? You can't be taken seriously.”

  • Profile image for This is Nottingham

    by Ted Mc., Notts.

    Friday, September 03 2010, 6:14AM

    “We should have reduced the debt during the good years, yes that makes sense so I wonder why none of the leading economies took that approach?
    I wonder why they ALL had a larger debt%GDP than the UK?

    Why not put the balme where it belongs? i.e., the million pound bonus taking (Tory voting?) so called professionals who were entrusted to work in the unregulated international financial markets but who were apparently more concerned about their bonuses than good financial practice.”

        Add your comments

        max 4000 characters
         
         
         
         
         
         

        Tell us about your area

        Got some interesting news? Write about it and let your whole community know.

          Write an article