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National debt more than double under coalition

Published 30/04/2015

Your editorial (DebateNI, April 25) argues there are many other issues which affect far more people on a day-to-day basis, which scarcely get a mention during the hustings.

The level of Government debt, however, escapes the list provided.

Let's be quite clear here.

When the current Conservative-Lib Dem coalition entered government in 2010, the national debt stood at a mere £700bn and today it has exceeded £1,500bn. So the Chancellor George Osborn and his sidekick Danny Alexander have blown more than £800bn of our money in five years.

At current rates, the interest payments on that debt are approximately £40bn per annum and projected to rise to £60bn by the end of this decade as the debt increases and, this year, another £87.3bn will be added.

The only way this level of debt can be sustainable is if interest rates remain at rock-bottom.

And the only way they can be brought within manageable levels is if the economy grows at a faster rate and so reduce debt as a ratio of GDP, and tax returns increase substantially to allow for future chancellors to pay the debt down.

And yet as expected and signalled by the Governor of the Bank of England, should interest rates rise, then the interest due on this debt will quickly snowball out of control and the current levels of austerity will appear as nothing compared to what lies ahead.

Unfortunately for those going to the polls next month there is no evidence that the Labour Party or Lib Dems have addressed these issues either.



Belfast Telegraph

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