Thursday, December 28, 2006
True Scale of Britains Hidden Debt
Unveiling Britain’s True National Debt
Is this another nail in the house price coffin. A recent study claims Britain’s 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 (595 views)
2 thoughts on “True Scale of Britains Hidden Debt”
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bidin'matime says:
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.
sirgoogle says:
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.