What this graph clearly shows is:
- The massive deficit in public sector finances that happened in 2008 was not because of an increase in spending, but due to a huge fall in tax receipts because of the recession caused by the global banking crash.
- There has been a levelling off in spending in absolute terms, but given that this does not include inflation and increased demands due to an ageing population this actually amounts to massive cuts to services.
- The best way to fix the deficit is to increase tax receipts so they match spending.
- have an economic plan that delivers good well paid jobs (as oppose to the zero hours low paid jobs that currently exist) so that workers then pay income tax and VAT and help build tax receipts.
- reverse the cut to the 50p tax rate for high earners.
- ensure that tax dodging companies like these pay their fair share