Following on from Stephen Lark’s excellent letter to the Evening Star, todays Evening Star has an absolutely brilliant Letter by Eddie Phillips entitled Debt Created by Labour is the real Unfairness. I’m also copying this letter in its entirity.
“SEEING your photo of Phil Smart holding a “Un-Fare” placard at Ipswich Railway Station is a plain illustration of the Labour party peddling numerous myths about the current economic situation this country currently faces.
The Labour party fail to take any responsibility for the unprecedented debts they created during their last eight years and attack absolutely everything the Conservative-Liberal Democrat government is doing to deal with our officially-known trillion pounds of debt.
I say it was unfair that the previous government created £16,000 of debt for every adult and child in this country, and we personally have got to pay this back over the coming decades and this now needs to be dealt with through economic rebalancing.
Part of this is that service users (whether that be rail users or students at university) have to contribute more for the services they personally consume, rather than expecting all other tax-payers who don’t use a service, to subsidise them. This is exactly what our MP Ben Gummer is saying in response to Mr Smart’s suggestions.
What Mr Smart would like people to believe is that the government has its own money and can choose how to spend it. The truth is that it is our money as taxpayers, we are overspending by £8,900 per second and George Osborne recognises this and is taking the tough and fair action needed.
At the current rate of debt repayment, this bewildering amount of money will have been paid off by about 2030. This clearly is unsustainable and this government is taking the first courageous steps in dealing with the annual over-spend of £150 billion.
Mr Smart’s leader, Ed Miliband, has not done his sums. He claims the 2.5 per cent rise in VAT will cost each family an average of £7.50 per week. This is complete nonsense, as this would mean an average family currently spending £352 per week on taxable goods and services, not including mortgages, food and other non-taxed items. I doubt there are many readers of the Star who spend this amount week in and week out.
Union leaders also like to peddle a myth that our economic difficulties were solely the result of the failing of the banks. It is true that the bailout of the banks resulted in a small contribution to our national debt. However Ed Miliband’s old government had been over-spending from 2001 onwards and without any cushion of reserves, the economy fell over completely.
Thankfully under Mr Cameron’s leadership, the UK economy is showing many signs of positive growth, despite the predictions of gloom and pessimism constantly emanating from the Labour front bench and the unions.”