The TV pundits still don't seem to grasp the enormity of the Chancellor's borrowing binge to come, all the more significant because of the borrowing binge we've already had. The sustainable investment rule, for example, is no more. It states that national debt must not exceed 40% of GDP. Even on the Chancellor's own forecasts it reaches 39.8% by 2010 which, given consistent underestimates of borrowing, means it will be broken. Add in all the off-budget items carefully squirreled away by this government -- from Northern Rock to PFIs to Network Rail -- and it will hit 45%. Busted!
