Sunday, August 23, 2015

Britain's debt passes £1.5 trillion

The UK National debt excluding bank bailouts recently passed £1.5 TRILLION pounds.

As I wrote on a previous post, even with interest rates at rock bottom levels, the amount of interest the taxpayer has to fork out for this national debt is expected to be over £46 billion this year. The interest bill is expected to stay over £50 billion p.a. from next year and for at least the rest of the decade as you can read in a parliamentary report at

 http://researchbriefings.files.parliament.uk/documents/SN05745/SN05745.pdf

In other words, we taxpayers will have to fork out £50 billion next year to pay the interest on the debt accumulated for past spending before there is a penny available to spend on hospitals, schools, policing or defence.

That's after five years of what the left call "austerity" but which, in terms of getting the country back onto an even financial keel, is only now nearing the point where we can start reducing the debt.

Having said that, there are signs that we are starting to get the deficit under control. In fact, figures released this week showed that the government ran a budget surplus in July for the first time since 2012. But there is more to do.

It's why the country can't afford Liz Kendall's programme, let alone Jeremy Corbyn's.

I've used this graphic before and will probably use it again: this is what happens if you ignore the problem if spiralling debt ...


1 comment:

Jim said...

A moment of reflection. Why did it ever get this way?

Well sometimes we have to face the cold hard truth that we as a nation and as a people gave far too much power to the state, whilst holding far too high an expectation of that which it can do, at least with any level of competency. You see in a way the majority of people (even many of those who sneer at the "dole scroungers") are in fact dependents of the state.
Because we have the welfare state, we all assume the state will take care of our health and financial needs in old age, so never think to put any thing aside for it.

Older generations tended to be far more aware of the financial system, they had a "saving culture", they saved for old age, and if they wanted something they saved up for that too. If you got bored of "paying into the pot" before you could afford it then its quite clear you did not want it that much after all. These days though its just "bang it on the credit card" then grudgingly meet the min payments each month and wait for the government to come out with the next PPI windfall to clear it down.

There was a time when I was younger, I would cut our lawn for my pocket money, then I would also do my grandmothers too. These days of course "Granny's lawn is the responsibility of the council isn't it, and all these cuts mean it does not get done".

I guess its an age old problem. You must have gone the extra mile at work before to help someone above you out, and instead of being grateful for it, they just expect that level every time, then complain when you have other things to get on with so cant do it. Its the same with the state, they tried to take on too many things, tried to be all things to all men, could not do it, but of course raised peoples expectations, so now that's what they demand.

It really required a short sharp shock, some time in the last government to solve the problem, that is start to ruthlessly slaughter some of the sacred cows, and make real cuts. Sure it would have stung a bit for short time, but people would be over it by now. And there is the other problem really, you see the prime motivation for those of the state is not to fix things, the prime motivation is to kick the can as long as possible, stay in office as long as possible, and at the end, well it does not matter anymore, its someone elses problem now.

The overall problem is that between government offers/endless interference, and our own stupidity, we are in this position.

now if it is a concern that the policies of someone like Jeremy corbyn may kill the country then you have to see the light, cut like hell, whilst implementing the Harrogate Agenda to ensure that run away out of control spending by the likes of Jeremy is no longer possible.