Wednesday, 24 March 2010

The Real Deficit

To summarise Burning Our Money:

Total debt is still forecast to rise to £1.4 trillion by 2014-15, which is £56,000 for every household in Britain.

Not included in government figures are public sector pensions, PFI debt, Network Rail debt, and of course the liabilities relating to the bank bailouts. Add these in and the £1.4 trillion above is doubled.

The Budget projects an increase in public sector debt interest payments from £31.5bn this year to £73bn in 2014-15, a rise of 130%.

In four years time, the average household will have to pay £3000 pa in tax just to pay the government's debt interest bill.

To bring home to you exactly how much the country is in debt, this link shows what a million and then a trillion dollars looks like. Bear in mind that the notes used in the link are $100 dollars - so you can't even say ok each one is £50 as the exchange rate is not 2:1.

Frightened yet?

5 comments:

Daniel1979 said...

The £1.4 Trillion also does not include pledges to buy Mortgage securities and as such could be in excess of £2 trillion in a very worse case scenario.

Witterings From Witney said...

Thank you, Daniel, for completing my evening of doom!

Ok, so I missed a few more pallets! Apols!

IanPJ said...

If we go back to 2006, as the public sector was really beginning to grow, the figures that were produced then amazingly seem to be much worse than are being represented now.

Burning our Money did a report on the now famous Turner Commission. You can read their findings here http://burningourmoney.blogspot.com/2006/04/scary-pensions-numbers.html

Now it goes beyond scary, and is clearly in the realms of not recoverable.

Mrs Rigby said...

As IanPJ says, it's beyond scary, which is why so many people are imitating ostriches.

So, why have they done it? It can't be solely to spite the next government, because elections can throw up surprises.

Witterings From Witney said...

Unlike Ostriches Mrs. R, I dont think it is sand the politicos have their heads stuck in!