As I understand it this current govt is also spending more than it's taking in taxes. Possibly because they have managed to drive the economy into a second recession through their supposed quick fix austerity measures that now mean that none of us has a bean to spend--> less VAT income for the govt, more companies going tits up, loads of public sector workers out on their ear in sectors that that the private doesn't want to touch because there's no way to make them profitable, although they are part of what made this country a relatively pleasant place to live.
I cling to the hope that they will abide by their statement that they will not dismantle the NHS, because without that we could rapidly become the US: Few winners, a vast number of losers, millions of people without access to healthcare and only ever a few dollars from the pavement, millions of people who are still dirt-poor despite working 3 jobs. Yes, that is the American dream: "the US, it's better than living in a war-torn shithole" for most. Just about. And it could be us!
And bluebird, you are misreading me. Yes, I think that it is right that as soon as people are able to pay their own way again wrt HB and CTC, they should. What the system shouldn't engineer is disincentives to getting back into full employment.
I also agree with whoever said that cheaper housing is the answer. I actually think we need a massive building programme in this country- to flood the market to the point where house prices go right down. Houses prices are beyond ludicrous here. I wouldn't want masses of people to end up trapped in hideous negative equity though, which would happen. That one's quite difficult. Here in E Devon there is a massive development underway. The developers were supposed to be building 3000 houses per year between 2011 and 2025, until they realised that they would be shooting themselves in the foot to do it that fast- so they are now only going to build 300 a year and there seems to be no way to make them go any faster, no way for the local authority to enforce the contract. They have been had over a barrel by big business, probably utterly condoned by Tory grandees.