Robert Chote, the director of the IFS, does the invaluable job of totting up in today’s Telegraph just how much debt the country has racked up recently.
“In September last year, public sector net debt stood at just under £515 billion or 36.8 per cent of national income. Since then, the nationalisation of Northern Rock has added a further £87 billion and the Government’s day-to-day borrowing another £30 billion. By August this year, net debt had reached £632 billion or 43.3 per cent of national income, roughly the level that Labour inherited from the Conservatives in 1997.
To that total we will probably need to add another £40-50 billion for the nationalisation of Bradford & Bingley, up to £50 billion for yesterday’s recapitalisation package, plus the more modest costs of compensating depositors who have lost money in Icelandic banks.
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