With all sides playing down the level of cuts they are prepared to commit to, is it only a matter of time before Britain disappears into an abyss of government borrowing?

Yes all sounds rather alarmist but is it? Lord Forsyth who is an advisor to David Cameron obviously doesn't think so seeing as he is convinced that a new conservative government should cut taxes by £75 billion during a single parliamentary term.

Now I am sure the conservative party machine won't be happy with that leaking out, or are they just trying to prepare us for the necessary steps needed to pull Britain back from an unprecedented level of borrowing?

£15.7 billion was borrowed by the government in December to keep this precarious island that we call The United Kingdom afloat and prevent it sinking beneath the waves of debt lashing at its shores.

If there is no firm decision made on how the government is going to tackle the problem of our ever increasing national debt then credit agencies will downgrade our coveted AAA credit rating leaving us with the potential of devalued government debt.

It gets worse.

The city is waiting and praying for these cuts because it would be rather hard to price in complete debt devaluation into the bond markets.

We need some honesty from our politicians at this time more than ever as to the direction that they will take if they are given the keys to downing street and our civil service after the next election. Perhaps Lord Forsyth has shown us a glimpse of things to come.

Britain cannot take and doesn't have the stomach for any further tax hikes so that leaves public sector cuts as the only option in clearing our national debt.

But who pays for the benefits of those who will lose their jobs through government cuts? Or must we borrow more to pay for the benefits of those who fall on the wrong side of the cuts?

Sounds like a 'Catch 22' scenario.

So why are the three main parties unprepared to make any courageous statements to relieve the tension that is holding back both the pound and city confidence?

Well it's simple.

Would you tell a large proportion of your voters that your future policy will have the unfortunate side effect of making them unemployed just before a general election?


Comment Here!