Much has been made of the fact that the Labour Party’s 2015 general election manifesto begins with a so-called “Budget Responsibility Lock” to fully fund all spending commitments and reduce the deficit every year – locks and ‘triple locks’ currently being all the rage in British politics.
But Labour’s manifesto also begins with a blatant lie, and nobody seems to have called them out on it. So here it is, straight from the preamble to Ed Miliband’s pitch to the voters:
We will get national debt falling and a surplus on the current budget as soon as possible in the next parliament. This manifesto sets out that we will not compromise on this commitment.
No, this manifesto does nothing of the kind. In place of honesty, Labour’s manifesto actually tries to hoodwink the British people by conflating the current budget and eliminating the current budget deficit with the overall budget and eliminating the overall budget deficit.
Eliminating the current deficit is simply not the same as getting rid of the deficit altogether and restoring a budget surplus. The current deficit refers only to the gap between tax receipts and day-to-day government spending (i.e. excluding capital expenditure). Therefore, it is quite possible to run a current budget surplus while still running an overall budget deficit. And why does this matter? Because you can’t begin to pay down the national debt so long as there is any kind of budget deficit!
To deploy one of those awful but ubiquitous credit card analogies:





