The Government will add around £350bn to the national debt before the next election. A ComRes poll commissioned by the Institute of Economic Affairs found only nine per cent of the public knew this important fact.
Astoundingly, 70 per cent of the public thought the Government would be reducing the national debt by this amount.
These figures are mind-boggling – £350bn is a huge number, but this is the context of what the Government is up against.
The state’s finances have been left in such a mess that urgent action is needed. Not only that but, despite maxing out the nation’s credit card, the quality of services like health and education is not measurably better for it.
The Institute of Economic Affairs has just released a major new piece of research Sharper Axes, Lower Taxes which sets out a plan to get public spending down to 30 per cent of GDP by the next election (instead of the Government’s plan of getting it to around 40 per cent).
In order to do this, the Institute proposes some fresh thinking about how services are delivered and areas like welfare and transport structured. This plan would help deliver extra growth for the economy (of around 0.7 per cent a year).