IMF Intervention Required

Over the past 30 years no British government has been able to sustain tax revenues above 38% of GDP – at present it is around 35%. Yet the level of services that voters appear to demand requires spending of around 45% and that will rise further as the population ages and health and pension costs climb. The challenge is how to reach a political consensus on how it should be bridged either by increasing taxation or having citizens pay for benefits they now receive free of charge. Labour made a start on that by introducing university fees, but to bridge the funding gap would require much wider charging, including some forms of healthcare. Cross-party agreement is impossible so it looks as if the IMF may have to sort out the Club Med banana republic the UK has become under Gordon Brown.

Advertisements

%d bloggers like this: