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Brown's 'responsible' borrowing

Updated on 27 October 2008

By Faisal Islam

The prime minister says his borrowing plans are a sensible response to the economic downturn.

Gordon Brown tells business leaders he is behaving responsibly by borrowing money to boost public spending during the economic downturn.

With the latest quarterly public debt figures at a record £37bn, the prime minister said that as the economy recovered, borrowing would fall.

But the Conservatives criticised the government, saying Britain wasn't prepared for recession; leading economists said ministers were misguided.

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Faisal Islam gets the inside story on the national debt.

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A Golden Goose calculus: Tax raised by City in 9 years = £250bn. Estimated cost of bailout = £50bn plus. Post-crisis inc in nat debt= £844bn

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