Quick budget question

Discussion in 'Current Affairs, News and Analysis' started by Pacifist_Jihadist, Jun 22, 2010.

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  1. With the looming cuts and tax rises to reduce the debt i got wondering. C4 last night were banding about £100bn worth of cuts needed, but how much debt are we paying off? Is it for just long enough to get the deficit down to acceptable levels or the full whack?

    Also does anybody know when the budget announcement is to be?
  2. I think you might need to listen to the Chancellor. IIRC, the structural deficit is on the order of £100bn+ (therefore those cuts would just stop it getting worse.)

    Starts at 12:30.
  3. Accumulated debt on the books is about £700bn, going up by £150bn this year. Even the Tories don't think it is possible to eliminate all the annual deficit within five years so by 2015 we will owe about £1400bn - costing about £70bn a year just in interest.

    You have identified the crucial point PJ - things are still getting even worse year on year

  4. Christ on a bike! And that's assuming that our credit rating is maintained and we don't see an increase in interest rates? (anyone? Alsacien)?
  5. Figures I'd read, show 170Bn worth of deficit, of which 70Bn is considered structural. I would expect budget savings in the order of 20 to 25 bn, with a plan to reduce the 170Bn to below the current structural amount over the course of the five years.

    Which just goes to show we all have different figures! Let me guess, the socialists have been in power again?

    Thing about PFIs they are off the book but in the case of the MoD already account for a huge amount of the budget, guess it just depends what you want to include/exclude.
  6. And this is the team that will do it?????


  7. Running a deficit is not a bad thing itself, in fact it is healthy thing and a good indicator of how rich an economy is, but it is a matter of how much you can afford.

    I don't think anyone is proposing to pay the whole thing off.
  8. Part of the problem here is that the numbers are so big that nobody can really put their hand on them.

    To put it in perspective, this year's OVERSPEND alone is 2500 pounds for every man, woman and child in the UK, or about 7500 pounds per household.

    It's insane.