So the UK gets a recession which was allowed to happen by this lamentable government with it’s complete failure to regulate the financial industry in a proper manner!
Of course, our government knows how to get us out of recession! Borrow, borrow and borrow and use the money, mainly, to take public ownership of the UK banks and building societies who got themselves and the UK into trouble!
The Conservatives said that this was the wrong thing to do! But they are not in power at this time so there was not a lot they could do. (But Brown still rubbished the Conservative’s lack of plans to get the UK out of recession.)
Now Brown and New Labour have to justify to the people of the UK the debt levels that they have built up. These debt levels are not insubstantial! The total aamount of UK debt is £799 billion(56.6% of UK GDP).
This debt amounts to an average of £13,000 per person in the UK. What is staggering about this is that each person in the UK has to pay £13,000 of tax in order to clear that debt.
And it must not be forgotten that interest accrues on this debt. The longer it takes to pay off, the higher the amount due to be paid!
And this the background which Brown claims that there will be no tax cuts in public services!
Keywords: credit crunch, debt, gordon brown, new labour, recession, taxation, UK debt