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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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