What happens if public sector income and spending do not match up? If the public sector receives more than it spends, it is said to be in “surplus”. In contrast when the public sector spends more than it receives it has to borrow the difference. When this happens the public sector is said to be in “deficit”. Are we talking about debt or deficit. The difference between the money the Uk receives and current (or day to day) spending. This figure is called the “Current Budget Deficit” The difference between the money it receives and current (or day to day) spending together with capital spending.This figure is called “Public Sector Net Borrowing” (PSNB) The UK receives and spends money continually throughout the year. The money it receives mainly comes from taxes (such as income tax and VAT) and social contributions (such as National Insurance) but it also comes from rents, fines, licences and interest payments on money it has lent out. A person overspends by £100 for five years – this is a deficit of £100 for five years running with an accumulated debt of £500. They then manage to only overspend by £50 for the next three years - this is a deficit of £50 for three years running with a total accumulated debt of £650. They then manage to actually save £100 for two years - this is a surplus of £100 for two years running, reducing the total accumulated debt to £450. So even though they reduced their deficit after five years and ran a surplus for the last two years, they are still left with a debt of £450. Labour will overspend public sector net borrowing for the next fixed term parliament 5 years, pushing up both the debt & deficit the only way Labour can slow both is to raise taxes & NATIONAL INSURANCE ( it’s in caps because it’s very important it’s not mentioned but it will increase.... it pays for NHS & state pensions. Massive public spending like labour, the greens, Lib Dem’s are planning on will send the national debt through the roof like all previous Labour governments. Balancing PSNB with national borrowing against revenue is what the Tory’s have been doing. Pushing up PSNB along with increasing National borrowing while increasing revenue through Tax & National Insurance is what labour do. So if you want Free WiFi Free bus train travel for under 25’s Home insulation for every house Free solar panels for every house £15 per hour minimum wage 4 day working week Just name a few giveaways then be prepared to pay for it. Labour the few paying for the many. Sorry for the long post but some explanations about our the UK debt needed a bit more insight. Like I said before Greece developed a false economy but the EU stepped in and ordered austerity in return for a bailout with our money. Labour the few paying for the many. Sent from my iPhone using Tapatalk