Darling - VAT cut from 17.5 percent to 15 percent

Just checked the BBC website; fiscal irresponsibility is the order of the day. Darling is up on this feet delivering this pre-budget statement.

So far, Darling has:

Reduced VAT from 17.5 percent to 15 percent:

Raised the government deficit to £78 billion this year and £118 billion next year.

Working on the assumption that this year's GDP is about £1.4 trillion, and assuming that it does not increase next year, this means that these deficits are about 5.5 percent and 8.5 percent of GDP respectively.

Do New Labour really think that they are going to get away with deficits of that magnitude?

Dream on....