David Cameron clearing the decks for a massive overhaul of public spending
David Cameron has today cleared the decks of the UK financial situation by confirming that UK national debt will increase to a staggering £1.4 trillion over the next five years. His estimate that interest charges alone will peak at £70 billion is another staggering fact which many in UK will be totally unaware of. There is a feeling that amidst the anger and shock about the figures in question David Cameron will attempt to push through the biggest overhaul of UK public spending ever seen.
We have already seen the "blame game" begin with the new coalition government giving Gordon Brown no excuses for the state of the UK finances. Many believe that the former government spent far too much tax revenue on the public sector although in reality the credit crunch and the resulting worldwide recession did not help. However, this is a very difficult game for David Cameron to play because ultimately once he begins to reduce public-sector spending it will be on "his head" and many people will forget exactly where the debts originated from.
The next few months will be vital for David Cameron and the stability of his coalition government as he seeks to rein in public-sector spending.
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