Andrew Dilnot CBE, Chair of the UK Statistics Authority, has today written to David Cameron to explain to him the difference between debt and borrowing.
The letter follows a complaint from Labour about false claims in a Conservative Party Political Broadcast.
Rachel Reeves MP, Labour's Shadow Chief Secretary to the Treasury, said:
“It is hugely embarrassing for David Cameron that he has had to have the difference between borrowing and debt explained to him by the Chair of the UK Statistics Authority. Now that his false claims have been exposed, it's time the Prime Minister stopped deliberately misleading people about his economic record.
“Andrew Dilnot’s letter confirms that, contrary to David Cameron’s pre-scripted claims in the Party Political Broadcast, national debt is not being paid down, but is actually going up. Since this Government came to office, public sector net debt has risen from £811.3 billion (55.3 per cent of GDP) in the second quarter of 2010, to £1,111.4 billion at the end of December 2012 (70.7 per cent of GDP).
“And so far this year borrowing is now rising too and is over £7 billion higher than at the same point last year. And this is borrowing to pay for economic failure as a flat-lining economy and rising long-term unemployment have sent the welfare bill soaring and tax revenues have been revised down.
“By squeezing families and businesses too hard, choking off the recovery and so pushing borrowing up not down, the Government’s economic policies have badly backfired.”
You can read the full text of Andrew Dilnot's letter here