Chancellor, we are in your debt

That’s it then. The economy is prospering, all’s well that ends well, the Royal Mail float has been a great success and the Dave and George show is projecting them as the great statesmen they think they are. Some Lib-Dems helped along the way but they never really mattered: Vince who?

So why then did Mark Littlewood, the respected Director General of the Institute of Economic Affairs say in ‘The Mail on Sunday’:

The underlying structural problems facing Britain have not been addressed. Much of the modest growth we experience in the next 18 months may turn out to be a bubble.

The Chancellor seems oblivious to some real issues:

a) For the fiscal year 2013/2014 the UK will spend £720 billion. It will earn £613 billion.

b) Never in its history has this country taken so long to recover from recession. The capital per head, adjusted for inflation, is still lower than in 2008.

c) The population is now 63 million and the structure is creaking and groaning particularly with the issue of geriatric care.

d) The housing market is being inflated by Government backed riskier mortgages. New housing starts are still stagnating partly because of the ponderous planning

process.

e) Productivity is going backwards. The level of output is only being maintained by people working longer and harder.

f)  A recent report from the Organisation for Economic Co-operation and Development has stated that our educational standards have fallen behind most

other developed countries.

But a key measure should be haunting the Treasury. 50% of our economy comes from state spending. It needs to reduce to around 35% to produce the balanced economy on which to base our future prosperity and to look after our ageing population.

But for now let’s leave the Chancellor to enjoy his moment of relief. I won’t even tell him that during the period from May 2010 when he came into office until now he has borrowed more debt than Labour did from 2000 – 2010.

George – we are in your debt – I wish we weren’t.

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