The UKs National Mortgage

Discussion in 'Current Affairs, News and Analysis' started by seaweed, Apr 8, 2010.

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  1. seaweed

    seaweed LE Book Reviewer

    Our country is now mortgaged to the tune of many billions or maybe one and a half trillion sterling depending on what one is reading. Help please:

    1. What is the total national debt?

    2. What is the annual interest bill on that (includes what interest rates does the Govt have to pay on its internal and international borrowings?)

    3. What are the repayment terms?

    4. Adding up from the above, what is the national bill to the taxpayer for interest and capital repayment, and dividing this by ? the number of adults what is each adult going to have to stump up each year, on average across the UK, to fund this borrowing binge?

    5. How on earth do we get back on track as a solvent economy?

    No point asking a politician as I would never believe the answer.
  2. I think NO ONE really knows the answers to the very pertinant questions, however one thing is certain, the situation will get worse EVERY day westminster keeps pouring money down the bottomless pit that is the EU and third world aid rather than trying to get Britain back on its feet!
  3. I found the figure of £848,500,000,000 from here. That's about 60% of our GDP. Include pension contributions and PFIs and that goes up to £1,340,000,000,000, which is 103.5% of GDP. Interest paid on the debt in 2009 was £35,000,000,000; the same as the defence budget.
  4. You must absolutely use the figure with PFI included. There is a massive slight of hand at play over PFI.

    One of the "rules" of accountancy is that liability (i.e. debt) must show on somebody's account. The only exception to this rule is, you have guessed it, PFI. Absolute rubbish. It is our debt. Whilst the repayment term remaining on a lot of PFI is obviously different, I would suggest that a rough estimation of 20 years remaining would give you an estimate on that part of the debt.

    However, it is hard to disentangle the rate of interest on this debt from the service charges -as most PFI include an element of design and build, and an element of operation costs as well.

    You are asking the right question, but there is no easy answer, unfortunately.
  5. At the last count I think it was somewhere in the region of £43-Billion pa.
  6. This last question - why would we want to be a debt free economy? I don't understand this.

    What would be the point? Show me any company or body corporate that doesn't borrow to fund expansion and investment?

    No, let's risk other peoples money and pay the proper interest rate on it, rather than risk our own.
  8. The ONS reckons that employment is at 72.7%, but only 28.86 million people are in full- or part-time employment (so are the rest in education, on disability or what :? )

    So whilst the national debt including PFIs divided by the total population of the UK equals £21,824.42 each, in reality this debt is borne by the economically-active, who owe £46,431.05 each. Not including any further borrowing in this new fiscal year.

    This, more than anything, is Labour's legacy.
  9. The future is actually worse than that - much, much worse

    According to the Bank for International Settlements, not a Tory think-tank btw, the proportion of GDP that we spend servicing debt could rise from approx 5% currently to 27% by 2040, the highest in the industrial world. Greece fares better, and Italy looks saintly by comparison.

    That is 27% of GDP, just paying interest, no reduction in reducing the debt, ffs!!

    The problem is that once you get into a debt spiral you can't afford to pay the interest and get ever deeper in the mire. The only way out is savage cuts, as you can only pay a maximum of 100% tax so limiting income, and allow inflation to ramp up

    When Gordo took over in 1997 we had a fiscal surplus of £6bn pa, by 2007, (BEFORE the financial problems started), he had turned this into a £33bn defecit pa. Prudence, my arsse.

    It is now generally accepted that we have an underlying defecit of £70bn pa, ie that is excluding costs associated with the recession.

    What a b#st#rd problem to leave for the future generation.

    Want to pay my share Bazzinho?

  10. Had my first Labour canvasser knock today. Young lady,21/22yrs old,asked me if the Labour party could rely on my vote? I said no,I want to go back to the 80's,as per their poster,she didn't get it so I asked her why I should vote Labour,she started to go on about,the Tories have got their sums wrong,and they're going to put up VAT,etc,so I said again,what are you going to do for me?

    We then got on to the Gordo eulogy,about all the money they have spent on schools,nhs,child poverty etc,I then asked her what happened to all the "rainy day"money,and gold reserves we had in 97 if Gordo is still trotting out the same old sh*t 13 years later,and the Labour party,Gordo in particular is blaming everybody else for this country's massive national debt. All they have done is spend my(the public's)money to prop up a system that hasn't worked since 98.

    So that's a no then she said,f*cking perceptive some of these youngsters! :lol: