"Blair and Brown basked in the '90s and early '00s boom in tax receipts - which came about through deregulating financial services (with the consequences we've seen now) and encouraging house price inflation, which in turn encouraged more spending, more lending, etc etc."
Hate to point this out Pottonista, but the Tories were right on board with all the banking deregulation thru the 90 's.
They were not exactly throwing up their hands in horror at what was going on.They had all the same kinds of policies!
And they INVENTED quangos!
Also, people go on and on about the "squandering" of money by New Labour. I am no New Labourite, but the fact is that the country's infastructure had been left to utterly decay during the Thatcher/Major years.
I remember how much things went to shit then, in all areas of public services, expecially here in the North. Also, many public sector jobs were moved to the regions which massively revitalised local economies.
There HAD to be money spent, simply to get things to a reasnable level, and more on par with a supposedly rich nation like ours.
The problem was, New Labour wanted to rebuild the public sector, but at the same time they wanted to keep big business on side, by cutting their taxes, deregulation etc.
Therefore nobody was paying.
The thing is though, I think even though New Labour got a lot wrong, a lot of the intentions (tax credits for working families etc) were right. Cameron's government have no altruistic intentions for us. Quite the opposite.
Also, I am getting heartily sick of people blaming the last government for what has been a WORLDWIDE banking and credit crash.
Did America have massive overspending in the public sector? Er..no.