It is simple arithmetic really.

In the year to April 2007 Labour spent £549.4 billion on public services.  The tax and other receipts were £516.3b, so the overspend, or deficit was:

£516.3 – £549.4 = £33.1b.

In the year to April 2008 Labour spent £582.2b on public services.  The tax and other receipts rose to £545.5b, so the deficit was:

£545.5 – £582.2 = £36.7b.

Then in September 2008 the banking crisis happened and trading slowed causing the tax and other receipts to fall by £9.2b to £536.3.  Unfortunately the Chancellor, Alistair Darling, had ramped up public spending to £633.8b in the year to April 2009, so the deficit was:

£536.3 – £633.8 = £97.5b.

The following year he continued ramping up public expenditure to £672.3b while tax and other receipts fell by a further £22.9b to £513.4b.  The deficit in the year to April 2010 was:

£513.4b – £672.3 = £158.9b.

The banking crisis was responsible for £9.2B + £22.9b = £32.1b.

Overspending by Labour was £158.9 – £32.1 = £126.8b.

So let’s be perfectly clear about this:

The banking crisis was responsible for 1/5th of the deficit

Labour was responsible for 4/5th of the deficit

Now will Ed Balls and Ed Miliband apologise for the deficit?

Sources:

Parliament Briefing Papers

HMRC Revenue & Customs Receipts

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