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Cameron Says Debt Burden Is ‘Worse Than We Thought’
June 7 (Bloomberg) -- U.K. Prime Minister David Cameron, preparing voters for the deepest spending cuts in a generation, said the previous Labour government left the public finances in a weaker state than he anticipated.
“The overall scale of the problem is even worse than we thought,” Cameron said in a speech today in Milton Keynes, 50 miles (80 kilometers) north of London. “How we deal with these things will affect our economy, our society -- indeed our whole way of life.”
The U.K.’s Conservative-Liberal Democrat coalition is seeking public backing for cuts that will be the deepest since Margaret Thatcher was prime minister in the 1980s and that will last longer than any other since World War II. The pound has fallen 11 percent against the dollar this year amid concern the government will struggle to fix the public finances.
Cameron laid the ground for the emergency budget on June 22 when Chancellor of the Exchequer George Osborne will set out the overall cuts needed to tackle a deficit that swelled to 11.1 percent of gross domestic product in the year through March, among the highest in the Group of Seven.
He said Treasury estimates show government debt interest heading toward 70 billion pounds ($100 billion) in five years’ time. “Today we spend more on debt interest than we do on running schools in England,” Cameron said. “But 70 billion pounds means spending more on debt interest than we currently do on running schools in England, plus on combating climate change, plus all that we spend on transport.”...
June 7 (Bloomberg) -- U.K. Prime Minister David Cameron, preparing voters for the deepest spending cuts in a generation, said the previous Labour government left the public finances in a weaker state than he anticipated.
“The overall scale of the problem is even worse than we thought,” Cameron said in a speech today in Milton Keynes, 50 miles (80 kilometers) north of London. “How we deal with these things will affect our economy, our society -- indeed our whole way of life.”
The U.K.’s Conservative-Liberal Democrat coalition is seeking public backing for cuts that will be the deepest since Margaret Thatcher was prime minister in the 1980s and that will last longer than any other since World War II. The pound has fallen 11 percent against the dollar this year amid concern the government will struggle to fix the public finances.
Cameron laid the ground for the emergency budget on June 22 when Chancellor of the Exchequer George Osborne will set out the overall cuts needed to tackle a deficit that swelled to 11.1 percent of gross domestic product in the year through March, among the highest in the Group of Seven.
He said Treasury estimates show government debt interest heading toward 70 billion pounds ($100 billion) in five years’ time. “Today we spend more on debt interest than we do on running schools in England,” Cameron said. “But 70 billion pounds means spending more on debt interest than we currently do on running schools in England, plus on combating climate change, plus all that we spend on transport.”...