News that the UK's public finances are in a worse position than those of Greece, according to the latest figures on government borrowing released on Thursday 17th February, should make most people wonder what Gordon Brown was actually doing while masquerading as Chancellor over the Blair years.
The Office for National Statistics (ONS) revealed that January alone saw a net shortfall of £4.3bn, much worse than City forecasts and that with January being a month that has always previously shown a healthy surplus. It puts the UK on track for a deficit of £180bn this year, or 12.8 per cent of GDP, economists said, shading the Greek figure, hitherto the worst in the European Union, of 12.7 per cent.
The Chancellor, in his pre-Budget report forecast a deficit of £178bn for the current year. Warnings that the UK could face a Greek-style crisis of confidence have been building for some weeks, and the end of last week saw a sell-off of sterling and British government securities, or gilts, once the disappointing news was announced. That bad news aside, the Treasury has stated that it will be sticking with the Chancellor's forecasts.
Chancellor Darling has promised to cut the underlying budget deficit by a half within four years, even as pressure on the finances of local government continues to intensify, with support from Whitehall being in the firing line for severe cuts whoever wins the next Westminster General Election and with local economies being hit by the continuing effects of the downturn.
I am more convinced than ever that Wales certainly cannot afford the consequence of either a New Labour or a Tory election victory and their half-baked ill thought out policies - roll on a hung parliament!
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