We all need to go right back in history before laying the blame on any single party.
In the last financial year the UK spent £108 billion on interest repayments servicing national debt. That is £1 for every £8 raised in tax revenue. It is also equivalent to about £3,850 per annum for every UK household. In other words, taxes are higher by 15% to cover this cost, with the majority falling on the higher earners.
This interest is paid on a debt mountain of £3 trillion. You can split it broadly into thirds. The first £1 trillion was handed over by Labour in 2010. Another £1 trillion was added by the Conservatives between then and 2024. The remaining third is largely down to the Great Recession and Covid, where I am convinced the same actions would have been taken by either government. You can split that last £1 trillion equally between the two parties.
Some debt is sensible. We are neither Norway nor Singapore so a sovereign wealth fund is not on the cards anytime soon. But £3 trillion is high and unsustainable where, after 25 years of containment, inflation is back with us once more. So far we have heard there will be no return to austerity and no increases to the four forms of taxation that contribute 86% of tax revenue.
Reeves' budget next month is going to be interesting. Unless Labour has discovered some form of miraculous economic management that all the brains in the world have so far failed to discover, we will see some massive U-turns and a change of rhetoric.
Neither party over the last 25 years has clean hands when it comes to sound economic management.