Of course maybe Brown doesn't have to cut spending ...

Everyone seems to assume that the only way to resolve the public sector finance disaster is to cut spending ( except Gordon Brown & co of course ).

But hold on a minute folks - Brown could keep spending going and no cause a financial collapse as lenders refuse to fund him if ....

..if Brown raises TAXES.

Why is no one thinking of this ?

My guess is self censorship - everyone assume that no one would be suicidally stupid enough to raise taxes yet further when the productive part of the economy was already on it knees.

But I'm not so sure.

Socialism benefits from misery and destitution - and this plan would create much more of both. You can see why Labour might favour it..

Don't say I didn't warn you.

Higher taxes - but only for the English

Labour's plans to punish England for giving it less votes than the Conservatives at the 2005 general election are now well advanced. the following measures have been "leaked" or trailed over Christmas:

• Student fees may rise by up to £20k/year - but only for the English of course. Also Labour supporters will no doubt get grants to help fight social mobility. So an English middle class family will pay for - the Scots/Welsh and Irish to educate their kids. EU citizens for their education ( when we know the govt can't manage to claim the loans back ).
• The punish people in Tory areas council tax revaluation plan. Those people who don't get their windows broken regularly or walk through broken glass on their pavement regularly will have to pay more council tax.
• You get extra tax for old age only in England. Now this is being spun as compulsory "saving" and "insurance". But the Scots get this for free, paid in part by the English. You can bet that the government won't be able to avoid getting its sticky paws on the "insurance" money - anyone remember National Insurance ? And of course only the middle class will be taxed - creating the reverse of Frank Filed objection about targeted benefits (which discourage saving )- with unavoidable targeted taxation.

Labour's debt binge - the Truth about 10 years

I keep hearing Labour ministers talking about reducing debt over Labour first ten years.

You know what ? It true ! But its very, very misleading. Most people would describe it as lying. It is certainly misleading.

Why do they say they reduced debt for the first ten years so often ? The answer is they are trying to hide the spending ( fuelled by borrowing in the economy and caused by a binge in the public sector ).

See the graph from the National Statistics Office record which I have annotated below (source here ):

I think most people on looking at that graph - published by the independent National Statistics Office - on hearing Labour ministers talk about reducing debt over 10 years and looking at the graph most people would say Labour are trying to persuade people of something that is not true.

Odd that I haven't heard any BBC commentators pick up Labour ministers ( Yvette Cooper on Newsnight last night, Alistair Darling on radio 4's Today this morning ).

The truth is that Conservative spending plans were adopted for the first two years of New Labour - so the Conservatives take the credit for those years and then Gordon Brown believing he had abolished Boom and Bust failed to fix the roof whilst the sun shined.

Every time you hear this for of misleading boast from Labour make sure they are made to eat their words. The problem with Conservative politicians sometimes is they don't counter these Meme's and spin from Labour with anywhere near the vigor and determination that is needed.