Tory Record: More Debt, More Taxes

As is traditional in elections the Tories are warning that Labour will bring more debt and more taxes. That is a given, however what is the Tory record after 7 years?

In 2010 the Tories promised to close the deficit by 2015. They failed to do that, so Osborne shifted the goal posts to aim for 2017/18. Under Hammond the OBR now says the government is unlikely to balance the budget by 2026. If the political will had been there they could have balanced the budget; from a worse position over the same period Ireland managed to balance the budget and cut the debt. Ireland now has a lower debt to GDP ratio than the UK and a higher GDP growth rate. The repeated Tory failure to balance the budget means that the national debt continues to rise and is now 89% of GDP. The Tories have added £500 billion to the national debt in 7 years, Hammond plans to add a billion a week to the national debt under Theresa May...

Taxes have risen under the Tories. The claim by the Tories to be a low tax party has not been true this century. They raised VAT almost immediately upon coming into office. They argue they have cut business taxes, yet they raised dividend taxes on small business owners and tried to raise National Insurance contributions. To be fair it is a mixed bag, some taxes have gone up, others down. According to the OECD the overall tax-to-GDP ratio has risen from 31.5% of GDP under Gordon Brown to 32.5% under George Osborne. Taxes have risen under the Tories…

This is not to say debt and taxes would not rise catastrophically under Labour. If you want to balance the budget you have to cut spending, George Osborne used to say privately that the Tories wouldn’t get re-elected if he slashed spending. Enda Kenny cut Irish government spending by 10% and GDP growth has been much faster than in the UK. He got re-elected and is the longest serving Fine Gael prime minister in Irish history.

Dan Jarvis Confuses Debt and Deficit

It is often said that Dan Jarvis – not generally considered Westminster’s greatest thinker – doesn’t have the brain to be the next Labour leader. He has tried to dispel those fears today with a 5,000 word essay about his vision for Britain in the New Statesman. What could go wrong?

Action Dan’s big idea is a typically uninspiring “one-off wealth tax” which he says would help bring down the deficit”. Except, as Lucy Powell points out, he means “debt“:

Is this the best Labour moderates can do? Best hope for Jarvis is that no one can be bothered to read his dire snoozefest of a manifesto…

Smith’s £200 Billion “New Deal” Pledge Busted by McDonnell

Labour leadership hopeful Owen “Oily” Smith’s £200 billion “British New Deal” pledge, unveiled this weekend, has already been trumped by John McDonnell’s promise today of £500 billion for small businesses. The shadow chancellor announced his plan in pro-Brexit Sunderland to help secure the North-East for Labour. Goodbye prudence hello prolificacy…

owen smith credit card

Both men are deluded. In May alone the UK had a deficit of £9.7 billion – £74.9 billion for the 2015-16 financial year. Smith’s £200 billion pledge would almost double Labour’s record deficit under Gordon Brown in 2009-10 of £154 billion, taking the total to approximately 10.3% of current GDP, and adding another 12.5% to our current £1.6 trillion national debt. The choice for Labour members is between a spendthrift and a squanderer…

Squandermania: Osborne Misses Borrowing Target For This Year

OSBORNE MISSES TARGETS

New figures from the Office for National Statistics show that – shocker – Osborne has missed his borrowing targets again. The 2015/16 financial year left a budget deficit of £74 billion, that’s £1.8 billion more than the ONS’ £72.2 billion forecast. Net public sector debt is just shy of £1.6 trillion.

Osborne has missed every single deficit target he has set himself. He asked us to judge him on how well he tackled the deficit, well he missed his borrowing target for 2015/16, he missed his balanced budget target for 2015, he’ll miss his new adjusted target for 2016 and his overall balanced budget target for 2020.

The Treasury are focusing on the fact that March saw the lowest public borrowing in a decade. A mere £4.8 billion…

George Osborne’s Budget Irresponsibility

Parliament is voting on George Osborne’s Charter for Budget Responsibility today. The Chancellor’s claim to be running a responsible budget is risible given public sector debt has doubled during his time in office. It is now approaching £1.5 trillion, or 80% of GDP. 

Osborne consistently failed to achieve his deficit forecasts in the last parliament – the deficit this year will be almost five times what the Chancellor envisaged in 2010 (via Spectator):

The UK’s deficit in 2015 will be higher as a percentage of GDP – Osborne’s preferred metric – than Greece. The only advanced economy with a higher deficit than the UK this year is Spain. Osborne says today:

“[Labour] have confirmed they want to go on borrowing forever – loading debts onto our children that they can never hope to repay. This is not socialist compassion – it’s economic cruelty. As Labour’s Great Recession showed, those who suffer most when government run unsustainable deficits are not the richest but the poorest.”

Yet it is under Osborne’s squandermania that government debt has rocketed, or has he might put it “loading debts onto our children that they can never hope to repay”. As for the “economic cruelty” of “unsustainable deficits“, only three months ago the Chancellor delayed his planned budget surplus by a year, meaning an extra year or excess before he balances the books. It isn’t just John McDonnell’s Labour that is an anti-austerity party…

Neck an Ouzo, Save a Greek

greece indigogo

A 29 year old Londoner is trying to raise a bailout fund for Greece on the crowdfunding website Indiegogo.

Kind hearted well wishers are receiving Greek delicacies in exchange for donating to the fund. Grecian treats include:

  • Pledge €3 and get a postcard of the Greek Prime Minister sent from Greece.
  • Pledge €6 and get a Greek feta cheese and olive salad delivered fresh to your door.
  • Pledge €10 and get a small bottle of Ouzo.
  • Pledge €25 and get a wine bottle filled with delicious Greek wine

€51,329 have been raised by 3,234 people in one day. A mere €1,599,948,671 to go…

Loony Labour Lefty in Deficit Deceit Leaflet

Dopey deficit dunce Ian Mearns, re-standing in Gateshead, claims that even “after four years of the most aggressive spending cuts in living memory,” the “deficit is still rising”:

This is factually incorrect. Now either the Labour MP is deliberately misleading voters or he’s stupidly confused the debt and the deficit.

You may choose one of the above…

Man With Plane Trolls Owen Jones From the Sky

With Owen Jones visiting South Thanet yesterday to campaign for Labour, Simon Moores – an economist, Guardian contributor, councillor and pilot – saw his chance to troll the his lefty colleague from a great height. And troll him he did, by flying this banner over the constituency for the afternoon:

Moores tells Guido:

“I did it off my own back because I can’t stand Owen Jones. I can’t stand economic illiterates and Jones drives me crazy.”

One critic Owen can’t block…

On Camera: Rachel Reeves Confuses Debt and Deficit

Footage has emerged from 2010, that shows a newbie MP failing to tell the difference between the debt and the deficit.

Despite boasting of her background in financial services, asked very clearly what the current national debt was, newly elected Rachel Reeves replied: “£156 billion” – the size of the UK budget deficit when the Tories came to power in 2010. She was speaking to Martin Durkin, for his documentary ‘Britain’s Trillion Pound Horror Story’:



For the record the UK’s debt at the time was around £0.76 trillion, so not like she was too far out!

Reeves would be rapidly promoted through a series of Labour financial briefs…

New UKIP Poster Mocks Dave’s Debt

This new poster from UKIP will be going around Westminster on a truck today.

let-me-do-it-again

Remind you of anything?

Chuka Umunna Economics 101

Chuka Umunna seemed to have had some difficulty with the basic facts during his interview on the World at One this lunchtime. Somewhat worryingly for a shadow business secretary, Chuka reckons:

“Most of our thirteen years in office we didn’t have a debt, er, a deficit, because we hadn’t had the financial crash.”

[gigya src=”https://abfiles.s3.amazonaws.com/swf/default_player_10.swf” style=”background-color:transparent; display:block; box-shadow:0 0 1px 1px rgba(0, 0, 0, 0.15); min-width:480px; max-width:480px;” flashvars=”image_option=none&imgURL=&link_color=steelblue&mp3Author=WikiGuido&mp3Duration=62041.0&mp3LinkURL=https%3A%2F%2Faudioboo.fm%2Fboos%2F1985893-chuka-porkies&mp3Time=02.01pm+12+Mar+2014&mp3Title=Chuka+porkies&mp3URL=https%3A%2F%2Faudioboo.fm%2Fboos%2F1985893-chuka-porkies.mp3%3Fsource%3Dwordpress&player_theme=light&rootID=boo_player_1&show_title=true&waveimgURL=https%3A%2F%2Fd15mj6e6qmt1na.cloudfront.net%2Fi%2Fw%2F160167″ width=”480″ height=”150″ allowFullScreen=”true” wmode=”transparent”]

Allow Guido to explain slowly. As this handy graph from the Spectator shows, the last government spent more than it was bringing in from 2002 onwards.

defici

Chuka’s claim that Labour did not run a deficit for most of its time in power is patently untrue…

H/T @roxley

Maggie's Children Unimpressed With Autumn Statement Burns: 'We are Dying a Third More Slowly'

Speaking at a packed London fundraiser for the Margaret Thatcher Centre last night, Maggie’s representative on earth, Conor Burns, cut through the euphoria being felt in some parts of the Conservative Party this morning:

“I am convinced if Margaret Thatcher were still here today, if she and Keith Joseph and all the others that set off on that radical revolution from 1979, if they were here today, they would be thinking that their principles – those of personal responsibility, freedom under the rule of law, taxation that incentivises people to do better –  could equally be applied to the challenges of the next thirty years as they so successfully applied them to the challenges of the thirty years after they set off.

Tomorrow we will have the Autumn Statement, the government will congratulate itself on some if it’s successes. we will be told we maybe borrowing maybe ten billion fewer than we thought we might be borrowing a year ago. We will be told the deficit is down by a third, it’s all good news but it’s like going to the doctor and the doctor telling you that you are dying a third more slowly. This is not exactly a universal cause for celebration.”

Somehow Guido can’t picture Osborne using that particular analogy this morning.

Tories: Jean Edwards' Cash Will Go to Debt Reduction

The Tories have announced that the £520,000 donation from Jean Edwards “will be used to reduce the national debt.”

Given that we owe more than £1,390,000,000,000 and rising, Tory MP Douglas Carswell points out:

“We’d need over 200,000 bequests like Ms Edwards’ this year just to stop national debt from continuing to rise.”

What a mess.

Labour Owe Downgraded Co-op Millions

Bad news for the Co-op today as Moody’s downgrades their debt rating to junk status. Labour’s bank of choice has been battered by bad debts over recent years, one of their major debtors is – surprise, surprise – none other than the Labour Party themselves. Of the £3,580,000 borrowed in 1999, only £189,000 has been repaid, meaning Labour still owe their troubled lender £3,391,000. Maybe they could pay them back to help them out a bit…

Debt Bomb: Deficits and Dancing Girls [VIDEO]

Unable to cut spending, Obama has been forced to accept $85 billion of cuts…

Dilnot Explains Debt/Deficit Difference to Dave

Guido said last week that Dave Denies Debt Truth, the boss of the Office for National Statistics, Andrew Dilnot, agrees. He has given Downing Street a slap, though Osborne will be pleased with the confirmation that the deficit is down by a quarter…

Dave Denies Debt Truth

PSND2

In all the referendum chatter yesterday something significant went little reported. Fraser Nelson pointed out that the Prime Minister told a massive fib in the Conservative party political broadcast. He claimed the government was “paying down Britain’s debts”, listen:

[gigya src=”http://boos.audioboo.fm/swf/fullsize_player.swf” flashvars=”mp3=http%3A%2F%2Faudioboo.fm%2Fboos%2F1171923-david-cameron-we-re-paying-down-britain-s-debts-23-jan-13.mp3%3Fsource%3Dwordpress&mp3Author=Spectator1828&mp3LinkURL=http%3A%2F%2Faudioboo.fm%2Fboos%2F1171923-david-cameron-we-re-paying-down-britain-s-debts-23-jan-13&mp3Time=08.16pm+23+Jan+2013&mp3Title=David+Cameron%3A+%22We%27re+paying+down+Britain%27s+debts%22+23+Jan+13″ width=”480″ height=”160″ allowFullScreen=”true” wmode=”transparent”]As you can see from the graph that is completely untrue. That’s not poor phrasing. That is lying.

UPDATE: Jean-Christophe Gray – the PM’s spokesman – told the Lobby that the PM does know the difference between the UK’s budget deficit, down from 11% to 7% of GDP and the total stock of debt, up from 70.7% to 79.9% by the time of the next general election.

Stella's Sound State Slashing Becomes Labour Policy BIS Team Endorse Zero-Base Pledge

Guido is impressed. Stella Creasy’s endorsement of the ASI’s “Zero-Base Policy” that would see every single item of public spending reassessed is gaining traction in Labour.  After Guido gave her interview a push last week, the idea has now been adopted by her colleagues over at shadow Business Innovation and Skills. Asked if he agreed with Stella’s reality-based thinking, Chuka understudy Ian Murray told an interview with London Loves Business:

“Absolutely. If you start from a zero budget spending review, you can always work forward if you have money available. It’s a bit about priorities isn’t it? I don’t think there’s anything wrong in saying that you have to look at where your money is best spent. 

Finally a policy on the blank sheet of paper! A win for Stella and the ASI.

Stella's State Slashing Summer Reading

In a low-key interview over the summer, Labour’s Stella Creasy declared herself a member of the reality based community. She told Patrick Wintour of the Guardian that the main focus of an incoming Labour government must be value for money. Therefore they would have to “reassess every single item of departmental public spending in response to mounting government debt and the pressure on public resources.” The interview won her plaudits from the likes of ConservativeHome and the Taxpayers’ Alliance.

The Zero Base Policy is an idea advocated by the Adam Smith Institute and they’re delighted that it’s gaining traction in Parliament:

“It’s great to see that Stella Creasy has been reading some Adam Smith Institute publications. Now that she’s read Zero Base Policy, she should try Madsen Pirie’s “Economics Made Simple” and Eamonn Butler’s “The Alternative Manifesto” to learn that you can’t spend your way out of a recession.”

While you might think all this praise from sensible types will blot Stella’s copy book in the eyes of her deluded Labour colleagues, quite the opposite has happened. Instead, LabourList readers have named her as their MP of the Month–  not only for her campaign against Wonga, but as the site notes, her Zero Base work too. There is a lesson for Labour there…

Government “Accidentally” Borrows £600 Million

This morning’s public borrowing figures do not make happy reading for the government. Despite July traditionally providing good news in terms of tax receipts, Chancellor Zero has borrowed £600 million in the last month – compared with a £2.8 billion surplus in the same month last year.[…] Read the rest

+ READ MORE +



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

Quote of the Day

The Queen visits children in a Manchester hospital:

“You were able to enjoy the concert at least, weren’t you?”

Sponsors

Guidogram: Sign up

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

Facebook

Sneering Thornberry Sneering Thornberry
Ministers Wheeled Out to Defend Ditched Care Policy Ministers Wheeled Out to Defend Ditched Care Policy
Watch: Crick Roasts “Weak and Wobbly” May Watch: Crick Roasts “Weak and Wobbly” May
Protester Arrested at May Wrexham Visit Protester Arrested at May Wrexham Visit
Clegg Spinning Brexit Doom Report Clegg Spinning Brexit Doom Report
Sunday Shows Sunday Shows
Read Tory Manifesto In Full Read Tory Manifesto In Full
Green Leaders Cringe Skit Green Leaders Cringe Skit
Never Ending Tory Deficit Reduction Horizon Never Ending Tory Deficit Reduction Horizon
LibDem Collapse Explained LibDem Collapse Explained
Taxpayers’ Alliance Updates Iconic Tory Poster Taxpayers’ Alliance Updates Iconic Tory Poster
Cult of Corbyn Cult of Corbyn
“Labour is Chocolate Gateau: Too Much Makes You Sick” “Labour is Chocolate Gateau: Too Much Makes You Sick”
Labour Election Broadcast Star’s “Tax Efficient” Accounting Labour Election Broadcast Star’s “Tax Efficient” Accounting
Reporter Grabs Boob Live on BBC Reporter Grabs Boob Live on BBC
Liar Clegg Brillo’d Liar Clegg Brillo’d
Listen: Was McDonnell Handed Deficit Note? Listen: Was McDonnell Handed Deficit Note?