Thursday, Dec 28, 2006

True Scale of Britains Hidden Debt

The Trumpet: Unveiling Britains True National Debt

Is this another nail in the house price coffin.

A recent study claims Britains national debt is three times higher than official government reports. If this is correct, Britain could be the most indebted nation in Europe. Yet, a UK Treasury spokesman claims the calculations are spurious because the government does not legally have to account for public sector pensions or liabilities of other publicly owned entities.

Has the UK government been covering up its true spending or not?

Posted by enuii @ 11:54 AM (561 views)
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2 Comments

1. bidin'matime said...

Of course, the government would claim that the pensions not yet due need not be taken into account, but that is not correct. With increasing life expectancy and decreasing annuity rates, the cost of buying an inflation linked pension today is much higher than it was even a few years ago. So the amount a pension scheme (that has promised pensions based on final salary) must set aside an ever higher amount to fund each employee as they reach pension age.

Private sector schemes are now required to recognise these additional liabilities, as are the companies that employ the future pensioners. The fact that public sector organisations can take on staff willy nilly without making any provision for their future pension is a scandal. We pay the tax to meet the salaries of these people, but it's our children and their children who will have to pick up the tab for the pensions.

Thursday, December 28, 2006 09:31PM Report Comment
 

2. sirgoogle said...

I have checked back to 26 Nov. Nobody picked this report up - so I popped the Daily Maul article into the Blog directly - even thoght it is a month out.

Saturday, December 30, 2006 05:44AM Report Comment
 

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