cashinmattress Posted June 23, 2009 Share Posted June 23, 2009 (edited) UK has 'biggest' hole in finances Britain faces the biggest hole in its public finances of any top economy, according to research by City analysts.The Treasury's 'annual budget gap' amounts to 16.3% of gross domestic product, or around £230bn, according to RBC Capital Markets. This is the amount of money the Treasury would need to raise through tax hikes or spending cuts in order to return the public finances to a sustainable level by 2014. The figures are worse than readings for the US, the eurozone, Japan, Australia, Canada and New Zealand. The grim assessment came as European Central Bank President Jean-Claude Trichet warned governments need to stop building up ever-larger deficits. 'There is a moment where you cannot spend more and accumulate more debts. We are at that moment,' he said. The Conservatives leapt on Trichet's comments. Tory Treasury spokesman Philip Hammond said: 'Jean Claude Trichet is right to warn about the dangers of adding to Britain's existing debt mountain. 'We need a different routemap to economic recovery - one based on savings, not more borrowing.' The RBC figures point to UK tax hikes and spending cuts that are 'politically out of the question', said analyst Russell Jones. He argued that the government would have to spend up to 15 years gradually rebuilding the public finances. Analysis from the Adam Smith Institute shows British taxpayers would have to hand over every penny they earned between January 1 and June 25 to pay for this year's vast public spending programmes. Oh Gordon, where art thou? Yeah, in number 10 fvcking us over. EDIT: Source added Edited June 23, 2009 by cashinmattress Quote Link to comment Share on other sites More sharing options...
THE BALD MAN Posted June 23, 2009 Share Posted June 23, 2009 Oh Gordon, where art thou? Yeah, in number 10 fvcking us over. It does not matter we can carry on selling over priced houses to each other to keep rich and pay teh debt down from the profits. Quote Link to comment Share on other sites More sharing options...
bogbrush Posted June 23, 2009 Share Posted June 23, 2009 It would be interesting to see the projection of how debt interest will rise up the pecking order of departmental spend league table in the next 5 years. We are awash in Debtwealth. Quote Link to comment Share on other sites More sharing options...
yellerkat Posted June 23, 2009 Share Posted June 23, 2009 I don't know your source but this graphic from the Economist implies we're no. 2: The Avis of countries? Quote Link to comment Share on other sites More sharing options...
three pint princess Posted June 23, 2009 Share Posted June 23, 2009 Oh Gordon, where art thou? Yeah, in number 10 fvcking us over. http://www.thisismoney.co.uk/news/article....mp;in_page_id=2 Quote Link to comment Share on other sites More sharing options...
Imminent_plunge Posted June 23, 2009 Share Posted June 23, 2009 Hurrah! Now we're first at something, so sit back, relax and don't worry about how the truculent one performs at Wimbledon. UK, TOP FOR DEBT!!! Applause x Quote Link to comment Share on other sites More sharing options...
50sQuiff Posted June 23, 2009 Share Posted June 23, 2009 It would be interesting to see the projection of how debt interest will rise up the pecking order of departmental spend league table in the next 5 years.We are awash in Debtwealth. The Treasury forecasts go as far as 2010-11: http://www.debtbombshell.com/public-spending.htm Quote Link to comment Share on other sites More sharing options...
givemethegun Posted June 23, 2009 Share Posted June 23, 2009 Uniquely placed. Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted June 23, 2009 Author Share Posted June 23, 2009 The Treasury forecasts go as far as 2010-11:http://www.debtbombshell.com/public-spending.htm Look at that debt interest! My word, it nearly doubles in one year! At what point do we lose the ability to service the debt? Quote Link to comment Share on other sites More sharing options...
self Posted June 23, 2009 Share Posted June 23, 2009 We're screwed. I can't see any other outcome now. Gov is ******ed, banks are ******ed. I would suggest people to seriously start thinking about what they are going to do. Quote Link to comment Share on other sites More sharing options...
NotAGuru Posted June 23, 2009 Share Posted June 23, 2009 Look at that debt interest! My word, it nearly doubles in one year! At what point do we lose the ability to service the debt? Did you also notice that in 2010-2011, servicing the debt will cost more than Scotland and Wales put together? Quote Link to comment Share on other sites More sharing options...
Panda Posted June 23, 2009 Share Posted June 23, 2009 I don't know your source but this graphic from the Economist implies we're no. 2: The Avis of countries? A comes after B, B comes after C? Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted June 23, 2009 Author Share Posted June 23, 2009 Did you also notice that in 2010-2011, servicing the debt will cost more than Scotland and Wales put together? It's just mad. And what happens when the North Sea isn't producing? Time to re-locate in the near future, hopefully before the stampede. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted June 23, 2009 Share Posted June 23, 2009 And all the we hear about here is about what meanie will cut spending most. From Labour and Tory. For all the tlak of a conservative renaisssence labour are still setting the agenda and the tories are still failing to broadcast the real issues. Quote Link to comment Share on other sites More sharing options...
mattydread Posted June 23, 2009 Share Posted June 23, 2009 UK has 'biggest' hole in finances 'massive' 'huge' **** hole what? Quote Link to comment Share on other sites More sharing options...
Guest spp Posted June 23, 2009 Share Posted June 23, 2009 On that note...Time for bed me thinks! Quote Link to comment Share on other sites More sharing options...
spivT Posted June 24, 2009 Share Posted June 24, 2009 except their figures or yardsticks for what constitutes 'sustainable' public finances are probably just as aribitrary as stuff like debt-to-gdp targets self-imposed by the likes of broon and the eurozone. Oh i forgot, wasn't gordon's golden rule part of broons four economic tests [or whatever] for actually joining the euro. That seems like another lifetime ago doesn't it ? You see prudence and sustainability in economic governance is largely down to political convenience. When things are going well give the impression of running a fiscally tight ship with these totally arbitrary ratio's......when things go pearshaped go in the completely opposite direction and then explain why the rules that held sway before don't matter now because of an unwritten exceptionality clause.....and then nobody bothers to ask why those rules even mattered in the first place partly because they anticipate a return to the previous arbitrary targets as the norm. i know economics is the dismal science, but politicians are just dismal. Quote Link to comment Share on other sites More sharing options...
Quagmire Posted June 24, 2009 Share Posted June 24, 2009 How Gordon "Prudence" Brown is still in office I don't know - these numbers are absolutely damning of his time as chancellor. Quote Link to comment Share on other sites More sharing options...
Bob Loblaw Posted June 24, 2009 Share Posted June 24, 2009 How Gordon "Prudence" Brown is still in office I don't know - these numbers are absolutely damning of his time as chancellor. In 1997 Public Sector Net Debt stood at £352 billion. From there it took only 12 years to double, and the Government forecasts it will double again by 2014. So during prudence Browns reign he doubled debt. In fact the only time debt actually decreased was the first four years in power which we can presume was because he was tied to the Conservatives previously made budget commitments. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 24, 2009 Share Posted June 24, 2009 And all the we hear about here is about what meanie will cut spending most. From Labour and Tory. For all the tlak of a conservative renaisssence labour are still setting the agenda and the tories are still failing to broadcast the real issues. It just proves how crap the Tories are or it could just be the Tories are just as clueless and would rather not be in charge so there reputation remains in tact. Quote Link to comment Share on other sites More sharing options...
grumpy-old-man-returns Posted June 24, 2009 Share Posted June 24, 2009 We're screwed. I can't see any other outcome now. Gov is ******ed, banks are ******ed. I would suggest people to seriously start thinking about what they are going to do. yep. I hope posters are now starting to realise just how serious this will get. Quote Link to comment Share on other sites More sharing options...
General Melchett Posted June 24, 2009 Share Posted June 24, 2009 Does this analysis include all the Off-Balance sheet PFI crap too? Quote Link to comment Share on other sites More sharing options...
stuckmojo Posted June 24, 2009 Share Posted June 24, 2009 Uniquely placed. +1. love the sarcasm Quote Link to comment Share on other sites More sharing options...
Jason Posted June 24, 2009 Share Posted June 24, 2009 (edited) Does this analysis include all the Off-Balance sheet PFI crap too? No, it's not the total debt figure, rather the amount of cash it needs to borrow to get by. Part of this is of course to to funds PFI obligations and people drawing a state pension. Edited June 24, 2009 by Jason Quote Link to comment Share on other sites More sharing options...
the primitive Posted June 24, 2009 Share Posted June 24, 2009 A comes after B, B comes after C? Erm, no. The numbers in the right-hand column are what's being refrred to. We have the 2nd highest adjustment required. This is different from the OP's point though, which was about debt a % of GDP this year, next year, the year after. Where we are the "winners" Quote Link to comment Share on other sites More sharing options...
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