Gordon Brown upbeat after £3 billion deficit boost
Gordon Brown is today upbeat after the 2009/10 budget deficit came in £3 billion lower than expected although still at a record £163 billion. While there's no doubt that the UK budget deficit will remain well over £80 billion for at least the next four years the government will attempt to make much hay while the sun shines regarding the smaller than expected budget deficit. But what does this all mean?
The truth of the matter is that UK national debt now stands at £1.3 trillion and the interest charges on his debt will over shadow the vast majority of departmental budgets within the government. Generation after generation of UK citizens will be paying back this massive debt for years to come through increased taxation and eventually reduced public sector investment. There is just no getting away from the fact that this massive debt needs to be repaid and saving £1 billion or £2 billion here and there will just not make any difference whatsoever.
The next government, whoever that may be, will need to make massive changes to the UK budget, take difficult decisions and ultimately is unlikely to put itself in a prime position for re-election at the following election.
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