The national debt is the amount our Government owes to buyers of a sort of IOU called gilts. It is about 60 per cent of gross domestic product (GDP).

The national debt as a percentage of GDP fell to 29 per cent by 2002. Then went up to 37 per cent by 2007. This was due to the Labour government implementing its General Election pledges to increase public spending, mainly on health and education.

Liberal Democrats at the time agreed that this public-sector investment was vital and long overdue.

Since 2008, the national debt has increased sharply, in part to a lower tax take and more unemployment due to the recession, which was caused by very risky speculation.

The main part was due to the bailout of the major banks. Even the Conservatives agreed that if they had been in power then, they would have nationalised the failing banks.

One of the under-reported problems with the Liberal Conservative coalition Budget to decrease the national debt is its inflationary impact, especially the VAT increase to 20 per cent, which will directly increase prices by £1 billion a month.

An interest rate rise to control this inflation, added to the proposed decrease in public spending over the next few years, would kill off any recovery and plunge us all in to what is called the mild sounding “double dip” but will actually be the worst of all recessions.

Richard Smyth, Copmanthorpe Lane, Bishopthorpe, York.