Wednesday, Apr 28, 2010
UK net lending at decade low
The Financial Services Club Blog: UK banks: over $1 trillion of maturing debt
UK net lending at decade low due to maturing debts. Net Lending 41bn at 2000, peak at 2006 and now at all time low.
Posted by easybetman @ 10:24 AM (553 views) Add Comment
7 Comments
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1. alan said...
A really good post!
Easy to read and understand.
2. mark wadsworth said...
Excellent article (assuming it all to be factually correct).
1. Total debts etc to be repaid over next three years £1 trillion (I'm not sure where $1 trillion comes from).
2. From 2001 to 2010 about 14 million properties have been bought and sold, i.e. about half of UK properties were sold at least once in the last ten years to this is sufficient raw material to do a very robust assessment of relative property and land values for when I replace a shedload of taxes (Council Tax, Business Rates, SDLT, IHT etc) with Land Value Tax. The average LVT will be about £4 per square yard per year for privately owned developed land, if you're interested, but AFAIAC if we made it proportional to true values it would be between £1 and £10 for ninety per cent and the most valuable bits (City Centres etc) would be up to £100 per square yard per year.
3. easybetman said...
@Mark - you are right, it should be 1T GBP ($ was typo I presumed). The data is from association of building societies and BoE, so should be correct.
I support property/land taxation in principle but I think expanding the council tax banding, OK make it up to band Z if needed is far more simpler than your LVT. By the way, what LVT has to do with this article ?
4. Skinnercm said...
I had left out the CGS and SLS numbers in original post - hence just under £800 billion maturing ($1 trillion). Including CGS and SLS means that yes, it's over £1 trillion so have amended. Thanks for the comments and link, Chris (author of Finanser Blog)
5. mark wadsworth said...
Band Z sounds good to me.
LVT has nothing to do with the article, but to explain LVT you need a load of statistics and figures of which the article had plenty.
6. miken said...
This is definitely the best article of the day. I wonder if the SLS will be extended again? Surely at some point the government will need the money it has lent out? Actually I do wonder under what terms the government got their 185bn and at what point they must pay it back to their lenders. Or perhaps this money has come from the QE pot, etc.
7. stillthinking said...
If lending shrinks to that extent, followed up by a funding gap and unemployment as the government retrenches, where is inflation going to come from?
Internal deflation while sterling falls.