Another big change outlined in the House proposal includes the elimination
of debt interest payment deductions for businesses.
Given the ring - fencing of the NHS (# 122bn this year) and international aid, the likelihood of still rising welfare payments (though there may be more savings here) and the
exploding debt interest payments, many departments will be on very thin gruel.
Higher debt interest payments, Ed Miliband noted in his speech last week, as In the Black Labour did previously, squeeze out money for public services and for investment in the long - term potential of our country.
Meanwhile, the Conservative Party says that Labour's spending plans would cost more than # 13 billion
in debt interest payments.
Total public expenditure, which
includes debt interest payments, will be # 702bn next year, then # 713bn, # 724bn and # 740bn, bringing real terms public spending to the same level as 2008.
The rest of it is made up
of debt interest payments, tax credits, benefits for working - age claimants and pensioner welfare.
Today's forecast shows a # 33bn saving on
the debt interest payments it was predicted we would have to pay two years ago.
Debt interest payments will be lower by # 1bn in 2012, # 1.8 bn in 2013 and # 3bn in 2014, a total of # 5bn lower over the course of the spending review period.
In today's low - interest environment, servicing debt is quite cheap so paying extra tax unnecessarily may be more expensive than
the debt interest payments.