Out of character.
If he was a brinkman by nature, one could perhaps come to terms with it. The sort of man that can take an exceptional risk with confidence in a super future benefit. The sort that willingly puts his home on the line as security for borrowings.
But Gordon Brown is just not that man. He gives the impression rather of nervous twitchiness and remember that all the women in his life were named Prudence. So the latest UK debt figures are doubly frightening: as if he does not understand or if he does fears no consequence, no personal assets at stake. Secondly, a democracy is supposed to throw light on such blindness. But there is no effective reining in, no group of people capable or willing to appreciate the obvious. Namely that the UK is rapidly going bust.
January is a good month for national finances. Income tax, corporation tax and capital gains tax peak due to the six monthly instalment not least from the self-employed. But this time (2010) there was actually a shortfall in public finance with net borrowings of £4.3bn. This was £9.6bn more than net borrowings in January 09 – itself hardly a successful financial month. Britain’s national debt now stands at £848.5bn or 59.9% of annual GDP.
On the bad news, gilts rose to a 15-month high yield of 4.1%. Just think, that is eight times the bank rate! On currencies, the pound dropped against the dollar and (note this) also the euro despite the eurozone woes.
Economists currently disagree on the timing of public expenditure cuts. But, as Boris Johnson has proved in London, reduced spend and loss of service are not mutually exclusive. He has cut spend by increased efficiency and productivity, leaving front line services untouched. We need a change and fast.
More at www jgwalkersmith.co.uk
