Has The Public Become Accustomed To Sky High Public Spending?

[dave50]

Since the virus appeared last March the government has been spending billions of borrowed money to try and support businesses and individuals from the financial fall out of the lock downs. Has this high level of spending proved that we can increase spending to the current levels after all and it might now become the norm with a danger of it becoming acceptable to continue to spend such vast sums on any manner of public services and welfare with any attempt to reign it in in the future met with resistance amid cries of savage cuts by the evil Tories?

[andy-hughes]

I have to confess, I did wonder where these billions of pounds suddenly appeared from, when 'austerity' was always the watchword, and public services were cut constantly.

I suspect we will pay for it in terms of increased taxes, but I hope no-one will complain - the thought of how we would be without the additinal spending does not bear thinking about.

[pixie374]

No idea what most of that means. But ensuring people don't go bankrupt due to covid and can continue spending,is obviously better for the economy.

[woofgang]

no. next question.

[ToraToraTora]

no, probably the stupidest post of the year so far, it's almost as if there's been a crisis, ooo hang on!

[Zacs-Master]

So has every other government. It doesn’t make the Tories’evil’.

[Khandro]

It isn't real money - it's "funny money", which your grandchildren may or may not be burdened with.

[ToraToraTora]

money has not been real since 1953.

[Sunk]

The Conservatives won the last 3 General Elections by saying (amongst other things) that Labour had a magic money tree that relied on public borrowing to finance the country.
That was based on what Labour did in response to the World Financial Crash in 2008. They did exactly what the Tories are doing now, they borrowed lots of money to shore up parts of the economy. And it worked, and Sunak’s spending will work.
The pain comes in having to pay it back. We had 12 years of austerity. The Conservatives successfully blamed Labour for austerity, but they won’t be able to do that this time.
The magic money tree has become a magic money orchard, and the free money has seriously harmed the Tories reputation as the financially responsible party.

[bobbinwales]

A think that everyone else, including other Guardian readers sunk, can see these are exceptional circumstances and its helped by almost zero intrest rates that we'er paying at present on these debts. My man Keirs spending would of been even more for sure (and maybe Sunaks should of been higher). Health spending will definately stay high as vaccinnes, tests, treatments, PPE costs will stay high and we after catch up on lots of delayed operations. Allso as the OP says some things will be difficult to take away once given like free school meals in holidays and higher universal credit. But some costs will fall like furlough and business support. And most people realise that more tax will need to be paid somehow but probly not till next year or until the economy can take it. Mayny famlies have struggled but others working from home have saved a fortune on travel, parking, holidays abroad, clothes, meals out. concerts/football tickets ect, so will be able to pay higher taxes

[Paigntonian]

You don't seem to be aware that every country on earth affected by the virus has hugely increased public spending. No alternative or a complete collapse of an economy. Therefore your point about Tories is ridiculous.

[Sunk]

Paigntonian

It was what happened in 2008. It was a financial pandemic and everyone borrowed to survive it. But Labour were blamed for 10 years for doing what they had to.
The Government are only doing what they have to now. But when the public finances are in a mess next year (and for the next 10 years), the buck stops at Boris and Sunak’s door.

[dave50]

The reason I mentioned the the tories is because whenever they try to balance the books they are aways accused of being the nasty party, for want of a better word. Ironically in this case it is they who have been forced into this spending spree and I just wondered if it will ever be brought under control and what the reaction will be when they try.

[Sunk]

Graph time...

https://images.exchangerates.org.uk/uploads/uk-borrowing-25-11-20.jpg

Public finances will be brought back under control. Look on the graph what happened after 2008.
But has you can see, the borrowing now (it hasn’t finished) is 3 times greater than then. So the pain will be 3 times greater.

// what the reaction will be when they try. //

Any Government putting on a squeeze will be unpopular.
And this one will be. No one likes higher taxes and cuts.