The politics of debt

Published: 30 July, 2010

• A SPLURGE by the Labour government led national debt to balloon before the bank bailouts: from 30 per cent of GDP in 2002 to 37 per cent in 2007.

In 2007/08, before the bank bailouts impacted on the balance sheets, we forked out £21.6billion in interest payments on our national debt, five times as much as in 2001/02, and triple what we spent on foreign aid.

What’s fair about spending more on interest payments to banks than on education?

Those who argue against reducing the deficit are proposing that we carry on making bankers rich.

The coalition government should be congratulated for reining in spending on debt, including by introducing a levy on bank profits.

LEE BAKER
Regent Square, WC1