interestrateripoff Posted March 7, 2014 Share Posted March 7, 2014 http://www.theguardian.com/business/2014/mar/07/george-osborne-20bn-black-hole-public-finances George Osborne is facing a £20bn black hole in the public finances, which means austerity may have to continue until 2020, according to research by the Financial Times.In a blow to the chancellor, who hopes to run a budget surplus in the next parliament, the research suggests austerity may have to last a year longer than expected because the government will not be able to rely on economic recovery to eliminate part of the deficit. Osborne is already committed to imposing £25bn in spending reductions between 2016-17 and 2017-18, which would have to include £12bn in welfare cuts. A black hole here, a black hole there, pretty soon we are going to be talking about serious money! Quote Link to comment Share on other sites More sharing options...
zugzwang Posted March 7, 2014 Share Posted March 7, 2014 By 2020 the UK will have disappeared over the event horizon never to be seen or heard from again. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted March 7, 2014 Share Posted March 7, 2014 shouldn't have given it away to idiots to buy houses they want afford. Quote Link to comment Share on other sites More sharing options...
South Lorne Posted March 7, 2014 Share Posted March 7, 2014 By 2020 the UK will have disappeared over the event horizon never to be seen or heard from again. ..if as expected Labour get in at the next election ....you may bring that date forward by three years.... Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted March 7, 2014 Share Posted March 7, 2014 £20Bn, the stuff of George's dreams. It'll be £70Bn in interest alone by 2017. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted March 7, 2014 Share Posted March 7, 2014 By 2020 the UK will have disappeared over the event horizon never to be seen or heard from again. As long as we go along with Sandra Bullock in her NASA knicks it won't be so bad. Quote Link to comment Share on other sites More sharing options...
Mugwump Posted March 7, 2014 Share Posted March 7, 2014 There have been black holes in budgets for as long as I can remember. It never seems to make any difference though. I wonder why? Quote Link to comment Share on other sites More sharing options...
macbeth79 Posted March 7, 2014 Share Posted March 7, 2014 There have been black holes in budgets for as long as I can remember. It never seems to make any difference though. I wonder why? Cause the world is not going to end any time soon. Quote Link to comment Share on other sites More sharing options...
Wurzel Of Highbridge Posted March 8, 2014 Share Posted March 8, 2014 There have been black holes in budgets for as long as I can remember. It never seems to make any difference though. I wonder why? Most likely something to do with printing money and buying their own debt. Selling off national assets. Currency debasement aka inflation. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted March 8, 2014 Share Posted March 8, 2014 (edited) That £20bn is forecasted. What the Guardian article does not cover from the original FT is the problem with the model. I don't have a subscription but think it is around the spare capacity in the economy. On a related point these forecast cuts are treated as 'banked' but the reality is they are just numbers on paper. Institutions have no idea how they will make the cuts. The idea is i think public sector debt transferred to private sector debt. Attached with that is alot of public sector job losses. The political parties do not talk about tax rises. Edited March 8, 2014 by Ash4781 Quote Link to comment Share on other sites More sharing options...
oracle Posted March 8, 2014 Share Posted March 8, 2014 ..if as expected Labour get in at the next election ....you may bring that date forward by three years.... ....scots go for independence, that cuts 50 odd from labours majority. ...people fed up with libdems as the "all talk" party..that's another 20 or 30 ....people get wind of labours postal vote rigging tactics(and basically their revealed hatred of democracy.....that's another 50 at least. looks like tory-ukip coalition to me. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 8, 2014 Share Posted March 8, 2014 pardon me, but the deficit IS a black hole. Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted March 8, 2014 Share Posted March 8, 2014 By 2020 the UK will have disappeared over the event horizon never to be seen or heard from again. No you are surely wrong, instead house prices will increase in mass until they form a singularity and all the one bed slave boxes in the Universe will be compressed to less than the size of an atom - thereby having infinite value per square foot. Quote Link to comment Share on other sites More sharing options...
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