A Strong Voice for Croydon Central - Gavin Barwell MP
Home
News
Help me
Campaigns
Biography
Contact me

Balls tries to re-write history
31/01/2011 08:51:00

I was listening to Ed Balls on the Andrew Marr show yesterday and was staggered to hear him say that in the run-up to the recession the UK didn't have a structural deficit (a gap between what the government spends in a given year and what it raises in tax after adjusting to take account of where the economy is in the economic cycle).

The question of who is to blame for the current structural deficit is obviously highly politically sensitive. Mr Balls wants you to believe that it is all the bankers fault. Our case is that Labour were running a structural deficit for years before the recession and it was this - combined with the necessary action they took during the recession - that led to the record structural deficit that we are facing now. If they had been running a surplus - putting money aside for a raining day as they should have been doing during a period of sustained economic growth - the structural deficit now would be significantly lower.

When I got into work this morning I decided to check for myself. I found a note from the House of Commons Library dated 17th June 2010 - which cites its sources as the Office for National Statistics, the Treasury and the Office for Budget Responsibility - which shows that the UK had a structural deficit in every year from 2001/2 to 2009/10 ie in every year of the previous government once it stopped sticking to the spending plans of the previous Conservative government.

For your information, the figures (they are given as a percentage of Gross Domestic Product ie the size of the UK economy) are:

2001/2 0.2%

2002/3 1.9%

2003/4 2.6%

2004/5 3.1%

2005/6 2.8%

2006/7 2.3%

2007/8 2.6%

2008/9 6.4%

2009/10 8.8%

So it looks like about a third of the structural deficit was there before the recession and was clearly Labour's fault - they chose, year after year, to spend more than they were raising. The remaining two thirds was caused by the recession. To what extent that was caused by the greed of bankers, a failure of regulation by government both at home or abroad, many of us seeking to live beyond our means or a combination of all three is a debate for another day. But at least some of the blame does lie with Gordon Brown and his key advisers Ed Balls and Ed Miliband.

Comment on this blog

 

 

 More Blog Posts
09/06/2017
My concession speech after the 2017 General Election
  Read Story
08/06/2017
Today is polling day - and why I hope you'll support me at the polls
  Read Story
07/06/2017
Five reasons to vote Conservative
  Read Story
06/06/2017
Howler at the hustings
  Read Story
23/05/2017
Campaigning suspended
  Read Story
22/05/2017
Funding care for the elderly while making sure people who have worked hard can pass something on to their kids or grandchildren
  Read Story
22/05/2017
Opposing Labour's plans for intensification zones in Shirley and Forestdale and to build on the Green Belt/Metropolitan Open Land
  Read Story
13/05/2017
Labour’s misleading leaflet on school funding
  Read Story
12/05/2017
Fox hunting
  Read Story
03/05/2017
Labour to hit families living in a typical Croydon semi with inheritance tax bill
  Read Story

Full list of blog posts here

     
Gavin Barwell, 133 Wickham Road, CR0 8TE, Tel  020 8663 8741      © Gavin Barwell  2017       Promoted by Ian Parker on behalf of Gavin Barwell, both at 36 Brighton Road, Purley, CR8 2LG