Speaking to the Treasury Committee of MPs, Mr King dealt a serious blow to Mr Brown’s political strategy of casting the next election as a choice between “Tory cuts” and “Labour investment.”

In the Budget in April, Alistair Darling set out plans to borrow an extra £700 billion over five years, taking the national debt to £1.3 trillion.

Simply paying the interest on that borrowing will soon cost more money than the Government spends on schools or defence.

via Mervyn King warns that spending cuts and tax rises are needed – Telegraph.

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