Monday, July 27, 2009
We can't keep spending like this.....
During the boom years, Brown boosted public expenditure dramatically. Between 2004-8, New Labour increased the budget by 28 percent. In 2005 alone, the budget increased by over 8.1 percent.
When the economy was growing at 3 percent, Brown could plausibly argue that these increases were affordable. Today, he has no such defence. The economy is shrinking, yet New Labour have just kept on spending. This year, the government plans to increase expenditure by a staggering 6.5 percent, while next year, it will grow by a scarcely credible 8.2 percent.
The UK economy simply can not afford these extraordinary increases in public expenditure. Something has to give, and come the next election, it is likely to be Brown. The UK electorate simply will not stand for this kind of wanton recklessness.