SIR – David Barlow correctly says that there is a difference between a cyclical and structural deficit (Worcester News, May 11).
It is what he does not write which shows conclusively that he and other Labour contributors to the Worcester News letters page are trying desperately to cover up Labour’s responsibility for the economic crisis.
A cyclical deficit is acceptable, indeed necessary and inevitable if the economy is doing badly.
The Government pays unemployment and other allowances to tide people through difficult times.
Government spending rises and tax receipts fall.
A deficit is created. But the crucial point about a cyclical deficit is that it needs to disappear. In economic good times the Government must pay it off.
The Government should put money away in good times to cope with economic problems in the future. If it fails to do this, the deficit becomes structural.
Even when economic growth returns, we can still not cover expenditure with income. This is exactly Gordon Brown’s failing as Chancellor.
Britain ran a deficit during Labour’s time in government in every year since 2001.
This shows that the socalled growth was a bubble and a mirage.
Ordinary people are now paying the penalty for Labour’s failure.
FRANCIS LANKESTER
Worcester city councillor
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