Rachel Reeves unveiled her long awaited spending review this afternoon and the cash got splashed.
Bold stuff indeed. An £11 billion uplift for defence. A whopping additional £29 billion for the NHS and £39 billion extra for housing and for nuclear power.
Have we reached the new Jerusalem? Perhaps you should ask me after the budget in the autumn. When we will know where all this money is coming from. But we don’t really need to wait for the OBR to realise it will be you, the taxpayer.
Excuse my pessimism but, our current Chancellor’s record isn’t much to write home about.
Jacob Rees-Mogg criticised Rachel Reeves's spending review
GB NEWS
Just look at what’s happening to the economy under this Labour government.
Inflation has jumped from a 2.2 per cent up to 3.5 per cent eroding the value of the cash you have in the bank.
Unemployment is currently at 4.6 per cent which is the highest level in four years. With at least 250,000 people losing their jobs since last autumn’s budget.
Who could have guessed that making it more expensive for companies to employ people, means that fewer people will be employed?
The national debt has risen to a frightening level.
The debt to GDP ratio is now at 95.5 per cent and rising. This is unsustainable at the best of times and we do not find ourselves in the best of times.
Our borrowing costs are rising and in the last financial year we spent 8.2 per cent of our national income on debt interest spending.
Not debt repayment. Paying interest on that debt. Imagine if you knew someone who was spending eight per cent of what they earned paying the interest off on their credit cards?
You’d be advising them to take some responsibility and seek good financial advice very quickly.
It’s worth reiterating the basic laws of economics.
The Government doesn't generate any of its own money.
It takes money off the population in the form of taxation and it can borrow money from the financial markets. Which is effectively postponed taxation.
If we want a state that can afford to pay for the nations needs and wants.
Then the way to achieve that is the same as it has always been, economic growth.
This requires targeted deregulation, tax cuts, a thriving private sector, trust in people to spend their own money and cutting back on bloated Government bodies.
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