ANDREW NEIL: Broke Britain’s on the edge of financial disaster, Labour’s out of its depth – and people are angry. I’m scared for what’s to come

Britain was broken after the Labor Party government, which lasted only one year. When you have to borrow the interest only to the previous debts you have accumulated-this is the group of Starmer and his miserable inadequate group of brothers-there is no other way to put it.

During the last summer election campaign, we will only lend to invest and enlarge the economy. You can forget all this. The brutal truth is that labor is already borrowing to meet the interesting costs on the debts we have already accumulated as a nation.

Yes, he inherited a lot of debt from the worker Tories, and this could not be done correctly. However, the government’s ‘solution’ was to borrow tens of billions of more to feed the insatiable appetite of Labour’s wide public sector tribes from train drivers to doctors, and thus worsened a bad situation.

Much worse, in fact, there is an increasing concern that we are standing on the edge of a financial cliff.

Think of our current dilemma. Official estimates estimates that the government should borrow £ 143 billion to meet the difference between planning spending and predicting that it will earn income. However, this is not extra cash for schools or hospitals, or which area of public expenditures is currently the flavor of Labour.

This will be swallowed with interest payments in our 2,9 trillion national debt, gigantic (and growing) more than £ 110 billion of £ 143 billion. In other words, more than three of what we borrow will be swallowed with the cost of serving what we have previously borrowed. It is Madhouse’s economy.

As if you have taken your credit card beyond your vehicles, so you can remove another card and use it to repay the unpaid balance on your original card. Although credit agencies will quickly catch you, you can escape once. And you still owe it as usual – you have transferred the debt from one card to another.

Of course, governments can get rid of individuals much more because they have monopolies about creating money. But ultimately reckless borrowing and financial hands catch governments – because labor is now discovering all our costs.

Under the dead hand of the Starmer and the discredited chancellor Rachel Reeves, our financial situation is getting worse, not better. Last month, the government borrowed £ 3.6 billion more than official estimates only two months ago and $ 6.6 billion more than June 2024. Too much to correct foundations. In fact, since modern records began, the worst June for borrowing is at the peak of the pandema in June 2020.

The government was forced to borrow, although Reeves gave an extra claw to the Treasury cases in June in June, the increase in the employer’s national insurance contributions (NICS). From where? Because the cost of serving national debt increased £ 8 billion last month and increased increased revenues.

In total, the NICs earned more than 17 billion revenue in June, but the cost of more than £ 16 billion to pay the interest of the national debt, deleted almost any income earnings from the issuance of penalty taxes to the business world. You are on a slippery slope when governments are taxed to the creators of the reserve to serve the debts of the state.

Now worse than England, which is locked in a financial apocalypse cycle.

For all Reeves’ challenging speech about the financial discipline, our national debt, which is already above 96 percent of GDP’s most conservative forecasts, is inevitably directed to 100 percent before ten years.

As a result, the annual tab of this debt for interest, today’s £ 110 billion – already more than 8 percent of all state expenditures and 4 percent of GDP will rise to £ 130 billion, the largest expenditure item in the government’s accounts.

There was a time when economic growth elixir was the answer to all the problems of the Labor Party, and that a socialist El Dorado’s Starmer -Revens in a magical way to billions of new income.

Rachel Reeves and Sir Keir Starmer pointed out the launch of the government’s industrial strategy in Nuneaton last month

The ministers praised even the fastest economy in the G7. I warned when there was a stupid claim because it was based on growth figures only in the first quarter of this year.

And so he proved. Apparently, GDP will fall in the second quarter or at best will fall into a straight line. However, Labour Britain is still leading the G7 – the highest state borrowing cost, the biggest share of national resources allocated to the service of national debt and the highest inflation. Unfortunately, even worse.

Reeves’ first budget last autumn hit the filling the economy, so Labour’s promised economic growth did not occur. This is preparing to repeat that it will have to accelerate taxes at least £ 20 billion further in order to maintain a view of financial prudence, and in this process it provides a second body impact for economic growth.

No growth means more borrowing. However, the debt markets, where governments go to borrow, are increasingly frightening about the British’s precarious financial position. They have already demanded a 5.5 percent efficiency of 5.5 percent to lend for more than 30 years; And 2022 short Liz Truss interregnum has been more than lending for more than a decade. If Reeves is forced to borrow additional, the cost will dilute.

Of course, the markets are sufficient and unless they refuse to buy more British debt. This would cause a financial crisis that could trigger an economic melting. Some of them are already speculating about a repetition in 1976, when the Labor Government should be saved by the International Monetary Fund.

Rachel Reeves left 11 Downing Streets after last year’s autumn budget. This budget has removed the filling from the economy, so Labour’s promised economic growth did not happen, Andrew Neil says

This time I suspect a slow but relentless intact rather than such a dramatic thing. But something, first of all, makes me worry. Most of the special money deposited in the British debt was borrowed. If for any reason, if this borrowed money was to be called, investors would have to pour British bonds to pay cash to repay their debts, and would lead to interest rates. This is a frightening expectation that will see that a really financial crisis emerged slowly at first and then suddenly.

These are uncertain times for England, it has become worse for a government to explicitly come out of the depth of the government. MPs left Westminster for the summer holiday, where the country was afraid of fragile. Although people could not do anything about mass migration, taxes are high, they have been more disappointed by going to a general sense of lawlessness and those who disrupt public services. We have become ‘more payment to less countries’.

Even some politicians murmured about a cottage discontent, and last week, such as anti -immigrant demonstrations in Essex town EPPING, some isolated street unrest.

I’m not so sure. Rebellions tend to explode while waiting at least. However, there is a fiery mood and it may not require much spark to ignite it.

If this happens, then it may be worse than Gloomsters predicted. Once – this government does not have the money to get out of trouble or to buy reliability to deal with it.