The government has been borrowing at a huge rate – something that tends not to be reported in general news, appearing rather in the relative backwaters of newspaper business sections. That means more of our money is going to finance capital.
In September, public sector net borrowing hit £14.3 billion, according to the Office for National Statistics – the sixth highest for a September since records began in 1993.
During the first six months of this fiscal year, the state racked up additional debt of £81.7 billion, up more than £15 billion over the same period last year.
The British state will spend about 10 per cent of total government revenue on debt interest this year, more than £110 billion. These are the highest interest payments among industrialised countries.
Debt service is now the second-largest area of government expenditure. It is effectively dead money – of no use to working people or the real economy.