Deficits

With the government today admitting that brexit is going to be an extremely expensive undertaking, it is worth putting the current public deficit figures into some context.

Pre 2008, we were running a deficit of around £20bn/year.
Since 2008, we have been running a deficit which rocketed to over £100bn/year but has been gradually reduced to around £60bn/year, which you’ll note is much higher than £20bn/year.

So when Philip Hammond says he’s going to increase borrowing, we’re not starting from a low level. We’re starting from a level 3x higher than what Labour used to run under non-crisis circumstances.

And bear in mind that this isn’t simply borrowing to invest, this is borrowing to plug the financial black hole of brexit. We could have done this without brexit and got a far better return on our money.

Or, in other terms, being in the EU costs us around £180m/week net. Leaving the EU costs us £469m/week.

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