The Chancellor’s Unfunded Spending Hikes

Back in 2005 Gordon boasted in his budget of “economic growth for the 50th consecutive quarter” in 2006. The next year he did not subsequently boast of 54 consecutive after Guido pointed out that he was taking credit for the five years of growth under the Tories following White Wednesday in 1992.

The point of Guido giving this background is to highlight that during all this long unbroken period of economic growth, Gordon failed to pay down the government debt – a truly prudent Chancellor would have done it at some strong point in the economic cycle. He did however forecast the budget surplus this year to be of some £9 billion, in fact the budget will probably be in deficit £9 billion. As Michael Fallon points out, despite many predictions to the contrary, the budget has never been in surplus* under this government. Gordon’s imprudence over the last 5 years alone has led to £69 billion in unplanned and unfunded spending hikes. The public sector has been bloated by a governing Labour party beholden to public sector unions for funding.

Who pays for this unfunded spending? Middle class taxpayers of course. The interest on the government’s ballooning debts consumes an ever increasing share of tax revenues. The nationalisation of Northern Rock further smashed the golden rule by £110 billion. We are now heading for G.F.T.** in a weakened fiscal position compared to other major economies. Alastair’s response? The word from the Treasury is that they plan to fiddle the statistics so that the golden rule will magically become unbroken. An illusion that will fool no-one.

Remember this when the new Chancellor talks about budgetary control or prudence in his budget speech. Treat any promises of future surpluses as a bad joke. Any “Green” tax hikes should be seen as what they really are, an excuse to tax the middle classes even more. The truth is Labour’s out of control unfunded over-spending hikes have added to Britain’s economic woes.

The budget should:

  • Focus on a growth-package to boost real incomes based on reducing the tax burden for those on low and middle incomes.
  • A boost for small businesses with reductions in corporation tax to Irish levels (12.5%).
  • A civil service recruitment freeze. We don’t need any more bureaucrats.

Instead we will probably get higher consumer taxes to pay for higher government spending.

*As pointed out in the comments, this is apart from the extraordinary 2001 windfall from the 3G bandwith auction bonanza. A one time bonus never to be repeated.

**Global Financial Turbulence in the vernacular of the Treasury.



Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Liam Fox shreds Cameron’s Calais scaremongering:

“Sad and disappointed to see our Prime Minister stoop to this level of scaremongering, especially as he knows the Calais agreement is nothing to do with the EU and agreed between the two govts”

Top Posts This Week

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

Open Minded Herbert’s Made His Mind Up Open Minded Herbert’s Made His Mind Up
Amazon’s Lawyers Prepare for Zombie Apocalypse Amazon’s Lawyers Prepare for Zombie Apocalypse
PMQs (Rap Version) PMQs (Rap Version)
Top Europhile Defects to Out Campaign Top Europhile Defects to Out Campaign
BARROSO: BRAKE WON’T PUT OFF MIGRANTS BARROSO: BRAKE WON’T PUT OFF MIGRANTS
PESTON OUT OF THE LOOP PESTON OUT OF THE LOOP
LABOUR’S CONSISTENT FLIP-FLOPPING ON SURVEILLANCE LABOUR’S CONSISTENT FLIP-FLOPPING ON SURVEILLANCE
UBER TRIES TO KILL HAILO UBER TRIES TO KILL HAILO
CALAMITY CORBYN’S COMICAL CAMPAIGN COCK-UP CALAMITY CORBYN’S COMICAL CAMPAIGN COCK-UP
PARLIAMENTARY PANCAKE RACE (INSERT MANDATORY TOSSER JOKE HERE) PARLIAMENTARY PANCAKE RACE (INSERT MANDATORY TOSSER JOKE HERE)
SADIQ LOSES IT WITH BBC JOURNALIST OVER TFL FARES SUMS SADIQ LOSES IT WITH BBC JOURNALIST OVER TFL FARES SUMS
FRENCH GOVERNMENT DISPUTES CAMERON ON CALAIS FRENCH GOVERNMENT DISPUTES CAMERON ON CALAIS
EX-LABOUR MINISTER COMES OUT FOR BREXIT EX-LABOUR MINISTER COMES OUT FOR BREXIT
EU GOING TO PAY FOR THAT? EU GOING TO PAY FOR THAT?
TORY MPS PAN CAM’S CALAIS SCAREMONGERING TORY MPS PAN CAM’S CALAIS SCAREMONGERING
LEAK: LANSMAN MOCKS “CLUELESS” UNITE CHIEF LEAK: LANSMAN MOCKS “CLUELESS” UNITE CHIEF
CARSWELL: “NOT GOING TO CRITICISE FELLOW EUROSCEPTICS” CARSWELL: “NOT GOING TO CRITICISE FELLOW EUROSCEPTICS”
SUNNY DAYS AHEAD FOR SCRAPBOOK SUNNY DAYS AHEAD FOR SCRAPBOOK
HOW MANY MPS DOES IT TAKE TO CHANGE A SOAP DISPENSER? HOW MANY MPS DOES IT TAKE TO CHANGE A SOAP DISPENSER?
KEN PREDICTS MCDONNELL WILL BE NEXT LABOUR LEADER KEN PREDICTS MCDONNELL WILL BE NEXT LABOUR LEADER
Don’t Criticise Fellow Brexiteers Don’t Criticise Fellow Brexiteers
EU CABINET GUIDE: WHITTO MOVES UP, GOVE TORN EU CABINET GUIDE: WHITTO MOVES UP, GOVE TORN
PROTESTER CHUCKS DILDO AT MINISTER PROTESTER CHUCKS DILDO AT MINISTER
LEAVE 9 POINTS AHEAD SINCE DAVE’S DEAL LEAVE 9 POINTS AHEAD SINCE DAVE’S DEAL
VENEZUELA FORCED TO FLY IN PLANELOADS OF CASH VENEZUELA FORCED TO FLY IN PLANELOADS OF CASH
SILLY SAUSAGE: TORY MP’S COMMONS DOUBLE ENTENDRE SILLY SAUSAGE: TORY MP’S COMMONS DOUBLE ENTENDRE
SRAELI EX-AMBASSADOR ‘LATE NIGHT VISITS’ SCANDAL BREWING SRAELI EX-AMBASSADOR ‘LATE NIGHT VISITS’ SCANDAL BREWING
UKIP WARNS OF RISK OF TURKEY JOINING EU UKIP WARNS OF RISK OF TURKEY JOINING EU
HIGHEST-EARNING MP DIDN’T NOTICE £400,000 INCOME HIGHEST-EARNING MP DIDN’T NOTICE £400,000 INCOME
BORIS’ NEW BALDNESS-BATTLING BARNET BORIS’ NEW BALDNESS-BATTLING BARNET