Alistair Darling is set to take official public sector net debt breaking through the £1 trillion barrier. This does not include the £500 billion plus bailout of UK banks and pre-election support for General Motors announced today.
From figures published February 18th 2010, UK public sector net debt was £848.5 billion. (or 59.9% of National GDP) – Source: Office National Statistics
The government has used fanciful growth forecasts of UK GDP growth returning to trend growth of 2.5% per annum by 2011. This is unlikely as even the Prime Minister has stated the UK is still in "Choppy Waters". This leaves the forecast growth rates of 0.6% for 2010 well behind.
This opens up a potential black hole in Britain's finances that implies that actual official government borrowing will be some 50% or more higher than he will announce in this month's budget.
The Lib Dems support this level of borrowing . Both Parties know this situation cannot continue.
BOTH PARTIES SHOULD START TO TELL THE TRUTH.
