Sunday, March 18, 2012
Luvverly Jubberly Short Termism
Apparently Osborne will use a Â£28 billion windfall from the transfer to the state of Royal Mail pensions to reduce the deficit and not to pay for anything else. Once transferred from the Royal Mail, Mr Osborne will be able to sell off the billions of pounds worth of shares, bonds and properties that have been accumulated among the fund's assets. The jolly decent accounting rules mean that the Â£37.5 billion of pension liabilities can then be absorbed by magic into the rest of the state pension system and so won't show on the Government books as debt.