National debt

At a time when all our thoughts and prayers are with the many families affected by the tragedy in Norway the domestic news agenda will again be dominated by the economy. At a time when the Eurozone is in crisis, the banks are still struggling to overcome their problems, Japan is suffering the after effects of the Tsunami, the USA is facing huge debt problems it is perhaps not surprising that growth in the UK economy is not racing ahead.

A couple of weeks ago I was studying the results of an opinion poll on the publics understanding of our Countries economic position and in particular the size of the national debt. Incredibly 7 out of 10 people thought that we were going to repay £350 billion of the national debt during this Parliament rather than increase it by this amount which apparently is what is forecast to happen. Only 1 in 10 correctly said the debt would increase. The reason for this is that every day our national debt continues to increase because we are still not living within our means. All the various savings the Government are making are only having the effect of slowing the rate of planned increases in public spending which were theoretically due to take place. I say theoretically because there is little doubt that even had Labour stayed in Government the international pressure to control the budget deficit would have forced them to cut back on the planned rate of increases in pulbic spending.