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Interest Bill On Uk's £1.27 Trillion Debt To Hit £1Bn A Week

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Britain's huge debt interest bill remains on course to hit £1bn a week this year, after official data showed the Goverment borrowed £3bn more in April than forecast by analysts.

Public sector net borrowing excluding one-off payments related to Royal Mail's pension plan and quantitative easing gilt coupon transfers, stood at £11.5bn in April, according to the Office for National Statistics (ONS). This was £1.9bn higher than in April 2013, and much higher than the £8.4bn expected by analysts.

The larger-than-expected deficit helped to push up public sector net debt to £1.27 trillion in April, or 75.6pc of gross domestic product (GDP). The interest on Britain's debt pile is expected to hit £52.1bn this year, according to projections by the Office for Budget Responsibility (OBR) - or the equivalent of £1bn a week.

“Today’s figures show that government’s overall debt has increased by £88bn, or 7.5pc since the same time last year - almost five times what we spend on fighting crime," said Ed Roddis, head of public sector research at Deloitte.

"This coming year, interest on central government debt will pass the £1bn a week milestone. As political parties form their manifestos for the 2015 election, they need to consider spending and policy commitments against the backdrop of this pressure on the public finances.” [more at link]

Thank heavens for Osborne, I don't know where we'd be without him :D


http://www.telegraph.co.uk/finance/economics/10849333/Interest-bill-on-UKs-1.27-trillion-debt-to-hit-1bn-a-week.html

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Doesn't 7% a year mean it's doubled in ten years? Sure I read that somewhere.

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Doesn't 7% a year mean it's doubled in ten years? Sure I read that somewhere.

Yep, 1.07 to the power of 10 = just under 2.

Edited by worzel

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Is this taking into account the fact that more than a third of the national debt has been monetised by the Bank of England using QE to buy the UK Government's debt, and any coupons paid on those Gilts are returned to the exchequer?

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Is this taking into account the fact that more than a third of the national debt has been monetised by the Bank of England using QE to buy the UK Government's debt, and any coupons paid on those Gilts are returned to the exchequer?

It's a great investment, just think of the "profits" to be made when interest rates go up..

Edited by interestrateripoff

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Why post this story now, nearly 6 months after it was in the paper ?

Why indeed? The national debt has reached £1,450 Billion. Ie £1.45 Trillion

There is no respite. We are not growing enough to stop the debt piling up or pay one penny back. At only 2% the interest payment would be £70 bn per year.

I earned about this on this site in 2010. The ring fencing of education and health was politically easier but actually long term foolish. It will all be worse for not dealing with it in 2010. We also pay £11.5 bn pa for overseas aid when we cannot afford it. It was £4 bn in 2010. We pay £8.6 bn to the Eu which is net of any receipts. A total waste. We cost industry billions on wasted ted tape over the Eu.

We need to ask, just how much tax will you pay for people to miss their nhs free appointments? We need property prices and assets to fall and get our economy into balance. We need to control land speculation now. We need to reverse the effect of QE which has slaughtered any sense of financial justice. We will all have to vote UKIP as they are more likely to tell you the unfortunate truth.

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Thank heavens for Osborne, I don't know where we'd be without him

2009/10 the budget deficit was 11% of GDP, now we're down to ~6% - no mean achievement in the circumstances.

If Ed Bo11ocks had been running the show we'd likely be at the IMF by now.

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2009/10 the budget deficit was 11% of GDP, now we're down to ~6% - no mean achievement in the circumstances.

If Ed Bo11ocks had been running the show we'd likely be at the IMF by now.

yeah, all that income from imputed rents, and all the tax collected from the drug and prostitution trades.

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yeah, all that income from imputed rents, and all the tax collected from the drug and prostitution trades.

not forgetting receipts back from boe on very same debt interest and the royal mail pensions short term accounting fudge.. We specialise in making up the numbers as we go along...

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All this ongoing extra debt and expense must be proof that we are a nation growing poorer not growing wealthier....how long do you have to keep extending the overdraft and consolidating the debt?

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Doesn't 7% a year mean it's doubled in ten years? Sure I read that somewhere.

It comes from a rule of thumb that is pretty easy to remember: the time it takes to double the original amount is 70 divided by the percentage of interest.

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It comes from a rule of thumb that is pretty easy to remember: the time it takes to double the original amount is 70 divided by the percentage of interest.

it is interesting the choice of 2% inflation by the Banking system masters

By the rule of 70, 2%means a halving of the value of your money over half your life...almost unnoticeable, yet giving a constant growth to the bankers, almost without effort on their part.

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