Have David Cameron and George Osborne ruined Britain?
Of course, the rot set in well before David Cameron and Nick Clegg formed the Coalition Government in May 2010. As the Public Sector Net Borrowing chart shows, it was during Gordon Brown’s ill-fated premiership that the deficit increased massively. (The Public Sector Deficit is the difference between what the Government spends and what it takes in via taxes to fund that spending – the difference being borrowed.) To give them some credit, as the chart shows, the Coalition did bring the deficit down quite markedly in their first couple of years primarily via swingeing cuts in the public sector. However, there are significant signs that the rate of decrease in borrowing may be slowing down. In December’s Autumn statement Chancellor George Osborne predicted that borrowing would be £108B this year, and £99B next year and just £31B in 2017-18. In his Budget last week, just 3 months later, Osborne revised those figures to £114B this year, £108B next year and £61B in 2017-18. Hand in hand with this, Osborne was forced to revise December’s estimate of growth this year from 1.2% to O.6%. While it looks like the UK may just about avoid a triple-dip recession, the outlook for growth in… Read More