Since coming to power in 1997, Labour has slowly but surely nationalised the country. Over 6.09 million people in the UK now work for the state. Total public sector spending as a percentage of GDP has risen from 40% when Labour came to power to today’s 53.4% level. This is even higher than the 50.4% average of our EU neighbours. A large part of the UK’s public sector spending is now borrowed from other nations, roughly the same proportion that landed Greece in so much trouble.
Even Ireland and Iceland, two of the worst hit countries by the financial crisis, generate a higher proportion of GDP from their private sector. In the US public sector spending is only 41.5% of GDP.
I find this very depressing news, and confirmation of what I always suspected. Labour have no clue when it comes to encouraging British citizens to generate wealth for themselves. Tax and waste is not a sustainable economic model, nor is hiring everyone into the public sector going to rescue us from this crisis. I wonder whether it is a cynical plan to ensure they are constantly re-elected (people working for the state are FAR more likely to vote Labour, especially if they think their job depends on it).
Whatever the reason, the UK needs a dramatic change of direction. Britons need to feel that setting up their own business is a worthwhile exercise again. Currently the UK is simply not competitive and the smartest people will simply move somewhere else to do business. Just like I did.
UPDATE: The figures above from the OECD do not include the money used to bail out the banks, which would make them even worse!