Conservatives
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| Press Release |
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| 10 December 2009 |
| Ref: 1491/09 |
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Eric Pickles: Gordon Brown’s Debt. Hasn’t it grown?
Today Eric Pickles, Conservative Party Chairman, launched a poster highlighting the growing debt Labour has left the country to pay. Every child will be born owing £23,000 in debt, £6,000 more than last year.
Launching the poster Eric Pickles said:
“For over a year we Conservatives have said that the national debt is crucial to turning round the economy. Now everyone agrees.
“We made a huge deal of it with the baby poster we launched this time last year. But since then it’s got worse, and the Government still has no credible plan to deal with it.
“It will be £23,000 for everyone in our country, every man, woman and child. That’s £6,000 more than this time last year. And if we don’t deal with it, like Labour, it will mean higher taxes and higher interest rates for everyone.”
Ends
For further information, please contact Giles Bancroft on 020 7984 8250.
Notes to editors
Please use these links to access pictures of the poster:
13989_Baby_96_.jpg
13989_Baby_48_.jpg
The Debt Facts
- Every child will be born owing £23,000 in debt. Net government debt is projected to grow to £1,473,000,000,000 – almost £1.5 trillion – by 2014-15.
- This is £6,000 more than a year ago. At the PBR last year, debt was forecast to rise to £1 trillion, or £17,000 per person.
- Just to pay the interest on that £23,000 debt will cost everyone over £1000 per year. The cost of servicing government debt is predicted to rise to £63.7 billion by 2013, or £1,037 per person.
- This year alone, Labour will add £2,900 to the debt of every child. Government borrowing this year is £178 billion, or £2,900 in extra debt per person.
What you could buy with the interest on Labour’s debt.
- If Britain wasn’t going to spend £63.7 billion a year on debt interest, we could:
Abolish fuel duty, inheritance tax, and stamp duty or
Abolish council tax or
Pay for 1.5 million extra police officers or
Pay for 1.6 million extra teachers or
Pay for 1.9 million extra nurses or
Cut the basic rate of income tax by over 13p.
- Britain will spend more next year on paying the interest on Labour’s debt than on educating our schoolchildren. The Dedicated Schools Grant in 2010-11 will be £31.9 billion. Debt interest payments will be £44.4 billion in 2010-11, and are estimated to rise to £63.7 billion by 2013-4.
- Britain will spend over three times as much next year paying the interest on Labour’s debt than on our transport system. The transport budget in 2010-11 will be £13.7 billion.
- Britain will spend more than twice as much next year paying the interest on Labour’s debt than on police and prisons combined. The combined budget of the Home Office and the Department of Justice in 2010-11 will be £20.7 billion.
- Britain will spend six times as much next year paying the interest on Labour’s debt than on building homes. The total budget for ‘Building and improving the supply of housing’ in 2010-11 is £6.4 billion.
- Britain will spend more than twice as much next year paying the interest on Labour’s debt than on tax credits. The total budget for tax credits in 2010-11 will be £22.8 billion.
- Britain will spend more than four times as much next year paying the interest on Labour’s debt than on the Olympics. The total budget for the Olympics is £9.35 billion.
HM Treasury, PBR 2009, p.189. Based on a population of 65m in 2016, ONS, http://www.statistics.gov.uk/pdfdir/pproj1007.pdf. This works out at £22,670 per person.
Debt interest will be approximately £63.7 billion (leaked Treasury documents). Based on a current population of 61.4 million, ONS
HM Treasury, PBR 2009, p.189
Based on a current population of 61.4 million, ONS, http://www.statistics.gov.uk/pdfdir/popnr0809.pdf
Fuel duty raises £26.4bn, stamp duty raises £7.4bn, and inheritance tax raise £2.2bn in 2009-10 (p.181, PBR 2009).
Council tax raises £24.8bn in 2009-10 (p.181, PBR 2009).
Based on Sergeant (pay point 2) earning £38,061 in 2009-10 (http://www.metibb.co.uk/08-5%20federated%20ranks%20pay%20final.pdf)
Based on teacher upper scale point U2 earning £34,650 in 2000-10 ( http://www.atl.org.uk/pay-and-pensions/pay-scales/teachers-maintained-England-Wales.asp)
Based on a Band 5 nurses salary of £29,764 ( http://www.rcn.org.uk/__data/assets/excel_doc/0008/156977/Pay_spine_spreadsheet_.xls)
http://www.hmrc.gov.uk/stats/tax_expenditures/table1-6.pdf
p.111, http://www.dcsf.gov.uk/aboutus/reports/pdfs/7493-DCSF-AnnualReport.pdf
PBR 2009, p.190
PBR 2009, p.194
PBR 2009, p.194
http://www.communities.gov.uk/documents/corporate/pdf/05.pdf
PBR 2009, p.190
http://news.bbc.co.uk/1/hi/uk_politics/6453575.stm
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