An excellent piece at Left Foot Forward drawing from research by the Tories shows that Britain’s debt to GDP ratio was relatively low going into the recession in comparision to other G7 countries.
Yes, a lot of debt has been taken on by taking the banks into national ownership – to protect the economy – but this debt ought to be relatively short-term. Indeed, if the process is managed correctly, the sale of shares back into the private sector will raise as much or more than was spent in the first place – reducing debt back to our original low position.
I’m not saying that it’s going to be easy, but as LFF explained, we certainly don’t have a debt crisis.
(HT to @tom_miller85 for this)