David Cameron’s speech based its figures on projections made by the previous government. The figures are shocking enough showing that £70 billion will be required to cover interest payments in five years time.
But that’s not the clincher. The clincher is that the figures provided by the previous government are incorrect. Cameron explains –
Last year, our budget deficit was the largest in our peacetime history. This year – at least according to the previous government’s forecasts – it is set to be over 11 per cent of GDP.
Today, our national debt stands at £770 billion.
Within just five years it is set to nearly double, to £1.4 trillion.
That is some £22,000 for every man, woman and child in the country. We knew this before.
Soon, the independent Office for Budget Responsibility will set out independent forecasts that will show the scale of the problem we are in today.
For the first time people will be able to see a really independent assessment of the nation’s finances and the size of the structural deficit.
It sounds to me that the situation is worse than that claimed by Brown and Darling, as I had been suggesting here on The Tap. How much by? We will find out(possibly) soon enough, or, at least, however soon ‘soon’ means.
I still have the sneaking suspicion that Cameron might prefer not to reveal the full extent of Brown’s deceptions, as part of what he is trying to achieve is win the confidence of markets. We might only find out the completely true picture once the financial crisis is over in about five years time. Brown’s lies will be inherited along with his finances.