Duncan Barkes is a broadcaster, political commentator, and the host of ‘A Nation of Taxpayers’ podcast.
Growing up as a child in West Sussex, we had a bank manager who lived in our road.
This was back in the 1980s when every high street had a bank branch, and every branch had its own manager. Remember those days? When high street banking truly valued your custom and the manager knew you by name as opposed to the faceless customer service that we endure online or via a far-flung overseas call-centre.
When I turned nine-years old, my parents opened a bank account for me. Mr Jefferson personally came to the house to hand over the relevant paperwork and a nifty ‘Black Horse Young Savers’ Coin Sorting Money Box.
He patiently explained the importance of saving, of not spending more than you can afford and he warned of the perils of borrowing money that you could not pay back. Sound financial advice I think you will agree and a prudent economic strategy that Lady Thatcher would be proud of.
Two months ago, figures from the Office for National Statistics (ONS) showed the government’s pile of debt had reached 100% of Gross Domestic Product (GDP). Disturbingly, this is the highest level since 1961.
A group of Labour MPs under the banner of ‘The Labour Growth Group’ has urged Chancellor Rachel Reeves to change the fiscal rules to allow more borrowing to fund investment and public spending.
The Labour government continues to bang on about how there will be “painful” decisions ahead of the 30 October budget due to the economic inheritance from the Conservatives.
Labour conveniently forgets the impact the pandemic had on our nation’s economy and the vast cost of furlough. This was the party that whilst in opposition was criticising the Conservative government for not locking down the country sooner and for longer. They also wanted furlough extended.
Painful decisions have already been made by this Labour government on behalf of UK taxpayers by awarding inflation busting pay rises to train drivers, doctors, and to others across the public sector. Labour has also chosen to commit over £11billion in overseas climate aid.
Pay increases in the public sector and NHS appear to be free of any pledge to reform archaic or ineffective working practices. Once again, the taxpayer picks up the tab whilst there is zero commitment from the government to improve services. Instead, they just offer waffle about the need to stop strike action.
Labour’s largesse to date is clear to see despite Keir Starmer’s warning just after entering Downing Street that we will need to collectively tighten our belts. This mantra is not being applied to everyone.
It is not in Labour’s DNA to reel in borrowing. There is not one member in that Cabinet (including Rachel Reeves) who has ever run a business or worried about making enough money to ensure that the month’s payroll can be met.
This stuff matters as if you are used to working in sectors which are taxpayer funded and where efficiency is a dirty word, how do you know how to run a tight ship when you are able to fall-back on the nation’s credit card? You do not. The Labour government of 1997 to 2010 proved that.
It is clear to me that the pitch has being rolled to allow Rachel Reeves to change the fiscal rules and allow her to borrow tens of billions of pounds more.
She has options – she could change how debt is calculated which obviously results in a change to how much debt the country officially has. Certain capital infrastructure projects could be excluded from debt calculation. There have even been suggestions that the Labour creations of the National Wealth Fund and GB Energy could be taken off the government’s books.
These options would allow the Chancellor to massage her own fiscal rules to borrow more. This ‘smoke and mirrors’ exercise will just hide the real extent of the nation’s financial liabilities and further build the debt pile.
I do not think my childhood bank manager would have approved.
It has never been more important to keep across reckless borrowing, unnecessary spending and public sector waste which is why the TaxPayers’ Alliance (TPA) has launched a new weekly podcast called A Nation of Taxpayers.
The podcast builds on twenty years’ worth of campaigning by the TPA in highlighting government and public sector waste. It will discuss the weekly political news, feature guests from across the political spectrum as well as the latest research from the TPA.
Most importantly, it will be the voice of UK taxpayers and hold those of every political colour to account when it comes to their tax, borrowing and spending policies.
