Bankrupt Britain

The Sunday Times covers the report of Malcolm Offord - a City fund manager with 21 years experience and an adviser to the Centre for Social Justice.

The report is very worrying as the paper says

he calculates that in the absence of government action, the national debt will balloon to more than 150% of gross domestic product over the next 10 years, compared with Labour’s “ceiling”, now breached, of 40%. The priority, he says, is to reverse the “profligate” spending that gave Britain an unacceptably big budget deficit at the start of the recession.

Over at Conservative Home-Tim Montgomerie summarises the report and maybe one thing that is being missed is the following

Tax receipts are now in free fall. To put this in context, in their peak year of 2007-08, tax receipts from the financial and housing sectors alone combined to contribute £60 billion to the Treasury. The Chancellor’s forecast that tax receipts in the worst forecast recession since the War will fall only by £10 billion is likely to be unrealistic.