It may have passed you by, but for eight of the last thirteen years the Labour government ran a substantial budget deficit resulting in a national state debt of around £8b. Our international credit lines are all but exhausted and the interest we pay on our debt can only increase. For every four pounds the state spends, it borrows one. As a nation we are living beyond our means and it does not take a brilliant economist to realise that this is not sustainable.
The only way the present government has any hope of achieving economic recovery is to stop borrowing and start repaying state debt, whilst endeavouring to contribute to an economic environment in which the private sector can increase wealth creation to the ultimate benefit of all. To do this it must both reduce public expenditure and increase the cash it receives in taxes. Neither measure is ever going to be popular with those who are going to be worse off as a result. Unpopularity of the essential measures does not alter the fact that there is no viable alternative. Whichever political party or movement is in power and whatever method we use to elect the government this is the unavoidable truth facing us.


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