The Tories have been selling this lie for nearly half a century. No we weren’t going bankrupt - we were off the gold standard by then - but Healey needed us to think we were (it’s impossible for the UK to go bankrupt in our own currency). So he lied.
‘Free market’ bullshit.
Exactly 50 years ago Britain went bust.
On 28th September 1976, a Labour Chancellor had to go cap in hand to the IMF to ask for a bailout.
Many won’t think it can happen again. I certainly hope it does not. But what if I told you that by many metrics, things are worse now than 50 years ago?
The government is again spending close to 45p in every pound, but much more of it on day-to-day spending like welfare.
Our debt interest bill is higher, and now adds up to more than twice what we spend on defence.
Our average deficit has been higher in the last decade than it was in the decade before 1976.
And our tax burden is higher too.
And much of that debt, far more now than 50 years ago, is held by far-flung strangers, rather than domestic financial institutions and British savers.
That doesn’t mean disaster is inevitable. We can avoid a repeat of history, but we need serious people to make tough choices.
Only the Conservatives have a plan to cut spending like welfare, reduce the deficit, and cut taxes. That is my mission as Shadow Chancellor.
Just as 50 years ago, Labour and their Chancellor named Healey are not up to the task. Only the Conservatives, under new leadership with a new team, are.