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Decades, if not centuries, of bitter experience have shown that individual endeavour and private enterprise are far superior to state intervention when it comes to managing wealth and improving living standards. Some public services must be provided centrally as market alternatives do not exist. But Labour has led the State to a dominant role – spending has expanded as a share of GDP by 20 per cent in the past decade.
In some regions, state power is overwhelming. In the North of England, in Scotland, Wales and Northern Ireland it accounts for more than half of all economic activity – well ahead of international norms. It is no coincidence that economic success in London and southeast England is partnered by smaller state incursions.
Gordon Brown, the architect of our modern economy, seems incapable of understanding that the ever larger State stands between him and electoral success. He and his Chancellor have allowed said State to expand without meaningful discussion of reform. The hard evidence, provided by the Centre for Economic and Business Research (and the figures will only get worse), shows Mr Brown is in for a very hard landing.
Your money in Gordon's hands
State spending as a proportion of national or regional income, 2007 estimates
Northern Ireland 70.5%
Wales 64.3%
North East 63.0%
Scotland 55.6%
North West 54.0%
France 53.2%
Sweden 52.4%
Denmark 50.1%
Italy 50.0%
Yorkshire & Humberside 49.5%
Belgium 48.6%
Finland 48.2%
West Midlands 47.1%
Portugal 46.6%
Netherlands 45.7%
United Kingdom 44.1%
Germany 44.1%
East Midlands 42.1%
South West 42.0%
Poland 41.9%
England 41.0%
Spain 38.5%
Japan 38.4%
East of England 38.3%
United States 34.9%
Ireland 34.1%
Australia 34.0%
South East 33.5%
London 31.4%
South Korea 29.2%
Source: Cebr
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The only surprising thing about New labour was how well they have managed to deceive the general public that they were anything other than a high tax big government party.
The economic boom they are so proud of is no more than a 'crack-up boom' built on excessive borrowing and is doomed to fail at some point.
People need to realise that governments don't 'invest' they spend other peoples money (badly), adding to the Government payroll doesn't add to the GDP and employment figures, it subtracts from it. I'd love to see the Tories say that instead of targeting fictitious figures like overall GDP growth and inflation rates, they will target Government spend as a % of GDP - within each region as well as for the UK as a whole, and money supply vs inflation rate
david, London, england
Turns out New Labour wasn't so very new after all. How surprising.
Richard, Cambridge,
In the areas where state spending exceeds half of all economic activity, presumably more than half of voters are dependent on the state for their pay cheque (or welfare cheque). In which case it is hard to see Labour getting voted out in favour of a party that promises to cut the size of the state.
This is the fundamental problem facing the Tories - they are pretty much in agreement with most commentators, journalists, economists and businessmen in believing that the state has got too big. But when it comes to voting, self-interest is still likely to trump everything else. Brown is the architect of the most grotesque gerrymandering this country has ever seen.
Simon Carter, London,
History tells us you can always trust Labour to screw up on the economy. This time it's education and the NHS as well.
And a nice bit of gerrymandering in the North and Scotland.
Tricia, E Sussex,