@ttosca
"We currently have a high deficit of just under 11% (last time I checked) because we are in the middle of a recession. Prior to the financial crisis, it was 3% - which is what the EU says should be the limit.
The financial situation we're in now isn't the result of spending too much money on schools and hospitals. It's because of the financial crisis and subsequent recession, and because corporations are paying less tax than ever."
That's kind of what I was trying to say. In 10-15 years of economic success and consistent growth we still managed to run a year on year deficit of around 3%. Hardly surprising that when it all hit the wall the deficit plunged even further.
Whichever way I look at it, I can't see past the fact that - good times or bad - our government always spends more than we bring in. I blame the election cycle.
Not sure what you mean by corporations paying less tax than ever. The last numbers I can see from IFS show a 14% year on year increase to around £43 billion in financial year 2011. The ONS states that 1.07 million new private sector jobs were created between 2010 and 2012, each of which incurs employers NI contributions @13.8% from the company. I'd say corporations as a whole were paying more tax than ever.