11-04-2025, 11:21 AM
This morning Rachael Reeves set out the foundation for her budget on 26 November.
This country is now 2.6 trillion in debt, and due to Liz Truss and her fantasy budget the markets are still charging us more for debt than any other country in the G7. This means that whereas in more normal times when our debt to GDP ratio is around 40% it currently is sitting at 94%. This means that 10% of all the tax receipts the government take is going to pay just the interest on that debt.
Add to the above woes although our growth rate is the fastest outside of the US in the G7 at just over 1% its not growing fast enough to help with these issues. Also productivity looks set to fall when the Office for Budget Responsibility reports the end of the month. Then we have the on going issues in the NHS, the Defence budget set to more than double from 2% to 5% in the next 5 years, problems with our infrastructure, Water industry, and on and on. This is the real world situation that Labour inherited. It's not the fantasy world that both the Tories and even worse Reform talk about. there are no easy solutions, if there was Labour would be taking them.
I have to say I was impressed with Rachaels speech, it made a change from the false promises and fantasy budgets proposed by the Tories and Reform. Taxes will have to rise, production will have to improve, and to achieve these things sacrifices will have to be made by us all. The consequences of not sorting this mess out, are scary. And voting for Farage will only make matters a whole lot worse.
This country is now 2.6 trillion in debt, and due to Liz Truss and her fantasy budget the markets are still charging us more for debt than any other country in the G7. This means that whereas in more normal times when our debt to GDP ratio is around 40% it currently is sitting at 94%. This means that 10% of all the tax receipts the government take is going to pay just the interest on that debt.
Add to the above woes although our growth rate is the fastest outside of the US in the G7 at just over 1% its not growing fast enough to help with these issues. Also productivity looks set to fall when the Office for Budget Responsibility reports the end of the month. Then we have the on going issues in the NHS, the Defence budget set to more than double from 2% to 5% in the next 5 years, problems with our infrastructure, Water industry, and on and on. This is the real world situation that Labour inherited. It's not the fantasy world that both the Tories and even worse Reform talk about. there are no easy solutions, if there was Labour would be taking them.
I have to say I was impressed with Rachaels speech, it made a change from the false promises and fantasy budgets proposed by the Tories and Reform. Taxes will have to rise, production will have to improve, and to achieve these things sacrifices will have to be made by us all. The consequences of not sorting this mess out, are scary. And voting for Farage will only make matters a whole lot worse.
We all have opinions, thank god they are not all the same, or there would be no debate.