All political parties must face up to the debt crisis’ severity 

The Independent’s Hamish McRae writes a superb column today on just how far the next government will have to go to tackle Brown’s debt crisis.  His main point is that unless severe action is taken over the coming years, we’ll be stuck in a perilous position by the time the next global downturn hits.  But it’s this passage which stands out:

“To what extent will the deficit fix itself, and how much more needs to be done? We don’t have to do the full 13 per cent of GDP and the present government proposed in the Budget that it should cut about half, 6.4 per cent of GDP, of that over an eight-year period. Vince Cable, who seems to have become the nation’s favourite financial GP, suggests an eight per cent correction over five years. Writing in a new pamphlet published by the think tank Reform, he suggests that the situation is more serious than the Government acknowledges and that some £110bn a year has to be saved.