£1 in every £100: the Unbelievable Truth

Next, I suggest we have an Unbelievable Truth debate, and let's see who can smuggle the most ridiculous soundbite lies through. The fact-checking charity FullFact.org had a posting testing ten of the facts given in the seven way leaders debate- stating that some were true, whilst others false. Their list didn't comment on one 'fact' David Cameron cited at least once (and if I recall correctly, twice) that rather than raise taxes, as Labour want to do, they can stop the deficit by merely saving £1 in every £100 that Government spends. He then makes the throwaway comment that any business can do this.

The FT records David Cameron as using the £1/£100 quote on another occasion:

Now, in order to try not to get lost in figures- it all depends which fiscal year you take, which estimate, revision or forecast, I will use round(ish) numbers. The UK Budget deficit is around £75bn on spending of £750bn (taxes and other income being about £675bn. (Googling, I also found £84bn and £90bn as the deficit: let's be charitable and stick with the lowest, £75bn.

Government spending is £750bn, so a 1% cut saves £8bn. So on a one year basis, no chance: the deficit will still be about £70bn; and on a two year basis- as per the FT article- again, no chance- the deficit will be about £50bn. Even on a five year basis, the claim is incorrect.

I will be interested to see if David Cameron repeats the claim, and whether his opponents ever pick up on its falseness. Buzzers, please.