Public finances

From the Financial Times

When I was young the public sector borrowing requirement was the statistic in the news. Bit of a fashion thing this, with other statistics which have had their day in the hot seat being the balance of payments, the retail price index and the rate of unemployment.

But perhaps it is set to come back, with COVID propelling it sharply upwards. The last leap up from the crash of 2008 started with Labour in office, but the Conservatives have now been in since 2010 - and have now been clobbered once again after their ten year haul to get borrowing back under control.

Whatever will happen if interest rates go up from their present level of around zero? What will happen if the people with lots of money - like the Arabs and the Chinese - stop thinking that the UK is a safe place to park it?

I wonder what Team Corbyn's answer would have been? Look the other way? I rather fancy the one-time hit on wealth I think I read about in the Guardian: take out the national debt in one fell swoop. Perhaps I need to talk to an economist to put me straight. 

Reference 1: https://en.wikipedia.org/wiki/List_of_British_governments. A useful list.