Gordon Brown's boast that Britain is well placed to weather the recession was dealt a serious blow last night.A report by the influential Institute for Fiscal Studies claimed Government finances are in a far worse state than the Prime Minister admits.
It said the budget deficit is more than four times as high as under the Tories in the early 1990s.Labour is also heading into the downturn with a 'significantly higher' level of public debt than when the Tories were in charge, the IFS claimed.
The Tories described the soaring levels of borrowing as a 'ball and chain' that will slow an economic recovery.
According to the IFS, the shortfall between tax revenues and public spending will be 4.4 per cent of economic output this year.
That compares with only 1 per cent at the start of the recession under John Major in 1990.
The figures come as the Conservatives renewed their attacks on Mr Brown, who was yesterday campaigning in the Scottish constituency of Glenrothes before next Thursday's by-election.
George Osborne accused Labour of 'weak and irresponsible' spending.
The Shadow Chancellor warned families will be hit by income tax rises of at least 4p if Mr Brown goes ahead with plans to spend his way through the downturn.
He described the cost of repairing the damage as 'a cruise missile aimed at the heart of the economy', and said families would be repaying the debt for years to come....
Government debt is heading for 39.7 per cent of gross domestic product, the IFS calculated - or a record £592billion.
In the last recession, at the end of 1990, public debt was far lower at 26.2 per cent of economic output - or £151billion.
The IFS expects the deficit, meanwhile, to hit £64billion this year, or 4.4 per cent of output. In 1990-91 it was a mere 1 per cent of national output, or £5.8billion.
The IFS also found that the public finances are weak in comparison with many other countries.
Britain has the 11th highest debt burden of 28 leading countries, it said, and the second-biggest deficit of the G7 economies after the U.S..
Gordon Brown a man who makes me so angry I could punch his light
sout
3 people have spoken:
In the slim hope that there maybe life after death and the possibility we can spend eternity doing things we please. I want it to go on record now that my eternal existence would like to be spent punching and kicking the one eyed cunt in the head. Yet somehow I know this still wont be enough.
Anon that is a good a way as any I have heard of spending the afterlife.
Anon, can I please get to pick him up with my forefinger in his socket when he thinks he has had enough, arthritis makes it quite painful to do the actual punching. I get the sense that you may be nice enough to let me have the odd kick at the fucker, just when you're having a breather and Fido's getting a round in (free of course, cause beer is free in the afterlife, isn't it?).
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