Interest on National debt to cost as much as Armed Forces

#1
Interest payments on the national debt are costing British taxpayers almost as much as the entire defence budget, according to Treasury figures.

The statistics illustrate the effect of the Government's high public spending and borrowing policies - and will further undermine its reputation for financial prudence.

The amount of taxpayers' money being spent on debt interest stands at more than £31 billion a year. Defence expenditure is £32 billion.

When the £100 billion bail-out for Northern Rock is added to the national debt, the annual interest payments will be almost neck and neck with expenditure on defence.

Some analysts believe the interest will soon be more than the defence budget. This would make national debt repayments the fourth highest-spending "department" after social security, health and education.

Michael Fallon, the senior Tory MP on the all-party Treasury select committee, said the figures - which he verified with the House of Commons Library - would bring home to taxpayers the real cost of the Government's extravagance.

Mr Fallon says: "We are spending as much on repaying Brown's profligate borrowing as we are on our Armed Forces: remember that the next time they are short of a helicopter in Helmand or Kandahar."
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2008/02/13/ndarling413.xml
 
#3
armchair_jihad said:
Interest payments on the national debt are costing British taxpayers almost as much as the entire defence budget, according to Treasury figures.

The statistics illustrate the effect of the Government's high public spending and borrowing policies - and will further undermine its reputation for financial prudence.

The amount of taxpayers' money being spent on debt interest stands at more than £31 billion a year. Defence expenditure is £32 billion.

When the £100 billion bail-out for Northern Rock is added to the national debt, the annual interest payments will be almost neck and neck with expenditure on defence.

Some analysts believe the interest will soon be more than the defence budget. This would make national debt repayments the fourth highest-spending "department" after social security, health and education.

Michael Fallon, the senior Tory MP on the all-party Treasury select committee, said the figures - which he verified with the House of Commons Library - would bring home to taxpayers the real cost of the Government's extravagance.

Mr Fallon says: "We are spending as much on repaying Brown's profligate borrowing as we are on our Armed Forces: remember that the next time they are short of a helicopter in Helmand or Kandahar."
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2008/02/13/ndarling413.xml
The only change with this bunch of cnuts is their PR. It's still overtax then overspend but it's dressed as prudence. To give a not very modern miltary parallel think WWI and the General Staff.
 
#4
Good job we've got our gold reserves to fall back on then, just think, in a really crazy world the Chancellor would have flogged them of for a bargain price.
 
#5
So the equivalent of more than 3 years defence budget has been put at risk to ensure that Northern Rocks investors don't lose money. I thought buying shares was supposed to carry some risk.
 
#6
sandmanfez said:
Good job we've got our gold reserves to fall back on then, just think, in a really crazy world the Chancellor would have flogged them of for a bargain price.
Don't be cynical now. There's an easy solution to the government's money problems. As our esteemed Chancellor pointed out soon after taking office "We can always authorise the Bank to print more money".

Cut down a tree, make it into paper, slap some ink on it and call it a billion quid. Sorted innit?

God help us.
 
#7
Now, who on earth could be surprized by this?

Many people, too many for my happiness, still imagine that the growling oaf Brown was a prudent Chancellor.

He of course has a bomb-proof pension but the 'little people' in the age bracket 21 to 32, and others naturally, will curse this evil monster and his politic of envy and malice until the end of time.
 
#8
craftsmanx said:
So the equivalent of more than 3 years defence budget has been put at risk to ensure that Northern Rocks investors don't lose money. I thought buying shares was supposed to carry some risk.
To be fair, the loan to Northern Rock has been secured against the underlying mortgages at, reportedly, a good rate of interest. And, if the Bank keeps screwing Lord, sorry, Sir Richard as it seems so keen on doing, then the Bank might make a decent profit out of the whole sorry business.

But I agree with you that the Rock should have been allowed to go bust and the shareholders would have lost their shirts.

Litotes
 
#10
heard_it_all_before said:
They could always add another 2p per litre on fuel duty in April. Oh, I forgot, thats already been done!!


How about a toilet flush tax.

5p per pish, and 10p per dump!
already done. If you are on a water meter, you pay for the sewage you put out (toilet flushes etc) as well as the water you draw
 
#11
Memory says when El Gordo started as Chancellor he was prudent for first couple of years.
He paid off our outstanding debt to the US of A from WW II early, to save on interest payments.
Now he has run up the UK National Debt to a all time high.
I know I manage my accounts better.
john
Give any Labour government enough time and they will shaft the economy.
 

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