Labour left the country with an annual overspend of £156 billion, greater than at any point in our peacetime history. Money spent just paying the interest on their £790 billion debt bill is money that could otherwise be spent on front line services.
Commenting, Mark Reckless said:
“Labour’s addiction to debt means each and every taxpayer now has to spend weeks of the year working just to pay the interest bill.
“If we listened to Labour the debt would be £100 billion higher. They must never be put in charge of our public finances again.”
Notes to Editors
New research has shown that someone on average earnings in Rochester and Strood will spend 22 days just paying for Labour’s debt interest bill. Labour left office with the country owing £790 billion, more than at any time in our peacetime history (HM Treasury, Public Finances Databank, Table Key M, link).
The independent Office for Budget Responsibility forecasts debt interest spending of £42.7 billion in 2010-11 (OBR, Economic and Fiscal Outlook, Table 4.14, link). There are 30.5 million taxpayers, so on average each taxpayer will pay £1,400 in debt interest (HMRC, Number of individual income taxpayers, link).
Figures from the ONS show median earnings in Rochester and Strood are £22,959 (ONS, Annual Survey of Hours and Earnings, Table 10.7a, 8 December 2010, link).
This means that 6.1 per cent of an average person’s income goes on debt interest.
This works out at 22 days spent just paying for debt interest.