Fatal inexperience

The Government debt mountain grew by a further £11.4billion in October. The UK now has one of the most expensive governments in the European Union – now materially above the Eurozone average and within touching distance of France and Sweden in spending above 50% of GDP. Blaming large Government per se for economic problems is overly simplistic – larger Government spending countries like Sweden and Finland have managed to build export market shares and provided stock market returns over the past couple of decades that put the UK to shame. Spain now has thousands of miles of high speed railways and over 50% of their energy needs come from renewables. Smart and productive investment by the Government in high quality education, healthcare and infrastructure are widely recognised by global investors as a major enhancement to the global competitiveness and living standards of a country. Making sure the numbers add up, and that spending is useful and productive, counts for far more than simply the size of government.