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Britain's National Debt - equivalent to £65K per household

(122 Posts)
Cindersdad Thu 27-Jul-17 13:26:26

How much do you think Britain’s national debt has risen in the last year?

I’ll tell you…

It’s an eye-watering… £128.5 billion!

In fact, our national debt is up over £2 billion in the last month alone.

That equates to an average debt of £65,000 per household.

Last month, the Office for Budgetary Responsibility (OBR) – Britain’s fiscal watchdog – produced its first ever Fiscal Risks Report.

It warned that Britain’s public finances are now in far worse shape to withstand a recession than they were on the eve of the last financial crisis, a decade ago.

And, as we face the twin threat of Brexit and a downturn… even the smallest decline in Britain’s growth rate could have a monumental impact on our debt burden:

“If GDP and receipts grew just 0.1 percentage points more slowly than projected over the next 50 years, but spending growth was unchanged, the debt-to-GDP would end up around 50 percentage points higher.”

Right now, there’s a black hole in our nation’s finances. And our entire system is teetering on the brink of a huge reset.

Spending is going up… our national debt is going up… our interest payments are going up.

It can’t continue… but it is.

Because no one in Westminster has a plan to get our public spending under control, or manage our burden of debt effectively.

Britain is broke.

And there’s a reckoning coming – maybe far sooner than most people realise.

It has doubled since 2010 when austerity started so whilst the last Labour government did leave a mess the present lot instead of clearing it up has made it a lot worse.

Brexit makes it harder but the real fault lies in years of overspending on welfare and low taxation. Under Edward Heath the highest level of income tax was 83%. Something has to give and more will have to give if we leave the EU. Which ever way we go things have to change. Most of those changes we won't like.

Over History in many countries governments have tried to avoid such crisis situations usually caused by overspending on both a national and an individual level. You can control your personal debt and conserve your assets. However you have little say over the national debt or how the government decides to try and manage it. To manage their debt they have to use your money by taxing you more and giving you less. Consider Argentina and Greece both once prosperous, Britain was once the wealthiest country in the world yet it has been lurching from crisis to crisis since the 1960's.

grannysue05 Thu 27-Jul-17 13:29:25

This is so depressing.
I think we all feel helpless.

gillybob Thu 27-Jul-17 13:50:32

Oh dear I am miserable enough to start with Cindersdad . This could very nearly push me over the edge !

Speaking as someone who contributes her fair share to the national debt and a bit more too I can't see a way out for many people.

Tegan2 Thu 27-Jul-17 13:52:36

Isn't a lot of what we 'owe' though, money that we 'owe' to ourselves eg to the Bank of England. I'm not sure how it all works, to be honest, so just asking confused.[not saying it's s good thing, however]

rosesarered Thu 27-Jul-17 13:57:13

Britain is not 'broke' at all.
It shows however why austerity measures are still needed.

M0nica Thu 27-Jul-17 14:15:19

I seem to remember that we had a similarly huge National Debt after the war and that did not limit growth or opportunity in the 60 years it took before Gordon Brown finally paid it off.

devongirl Thu 27-Jul-17 14:16:25

I don't think so, roses, if the last 9 years of austerity have left us worse off than we were to start off with - surely that indicatesm a change of approach is needed?

rosesarered Thu 27-Jul-17 14:36:57

Public spending still need a lid kept on it,otherwise we will end up owing even more.
Population growth partly due to being in the EU and also other immigration means that public spending ( NHS, schools,social housing) has rocketed up, and taxes gained, due to the often lowly nature of the jobs, has been less than needed.

More spending in certain areas could be helpful though, to the economy.

Tegan2 Thu 27-Jul-17 14:39:46

I must be a bit thick, roses, but what you say seems to contradict itself confused.

paddyann Thu 27-Jul-17 14:44:48

well I'm sure theres lots of things we can happily live without to stop it getting worse,HS2 ,Trident MP's expenses,the HOL ,Refurb of Buck House and Westminster ,Crossrail 2 ,Boris' garden Bridge etc etc etc .These tories sure know how to waste public money ,I'm sure they're much more careful with their own....didn't Mr Mays G4S get huge government contracts last month...nice work if you can get it ...but isn't it illegal to hand out contracts worth huge amunts of money to family or friends and if not WHY not?

rosesarered Thu 27-Jul-17 14:55:31

Tegan I was thinking of spending in certain areas such as money given to companies to train young people in essential jobs, apprenticeships, and so on.

rosesarered Thu 27-Jul-17 14:58:46

The refurb of Westminster and Buckingham Palace is essential work, all Parties are agreed on Trident.
HS2 ( you may have a point) the garden bridge ( wasn't it shelved?)

Primrose65 Thu 27-Jul-17 15:36:09

It's easy to look at what seems to be huge numbers and feel the end is nigh. Here's the national debt as a percentage of GDP for the last 100 years. We managed to set up the NHS in the 1950s when the debt was far higher in respect to our GDP and we've never come close to a default. The other alternative to tax hikes or benefit cuts is productivity gains and economic expansion. Cutting programs like Trident (5.5 billion a year = 0.003% of our debt) or HS2 (total cost about £55 billion today, more tomorrow) will not make any different imo.
It's not a great situation to be in, I agree on that.

devongirl Thu 27-Jul-17 15:39:14

Agree HS2 - what a waste of money in a time when we're supposed to be tightening our belts!

(And don't get me started on totally wasteful NHS iniatives like

M0nica Thu 27-Jul-17 16:31:07

There was a radio programme in the last few days talking about making the NHS more efficient and pointed out that in recent years these 'efficiencies' have been medically led rather than through re-organisation.

The example given was the development of new types of local anaesthetic and key hole surgery techniques that have made it possible for many operations possible as day surgery with no hospital admission. Examples would be cataract surgery, and carpal tunnel surgery.

devongirl Thu 27-Jul-17 16:36:44

Agree, my posting was wrong anyway, it wasn't the NHS per se but NHS England and the Health and Social Care Information Centre (HSCIC), wasted about 8m pounds.

NanaandGrampy Thu 27-Jul-17 16:42:00

Maybe we should cut back on some of the financial support we dish out to other countries and get our own house in order ?

devongirl Thu 27-Jul-17 16:44:29

Actually sounds good but I don't agree nana - people in need in those countries are in a far worse position, it would IMO be completely wrong to cut back on foreign aid.

Tegan2 Thu 27-Jul-17 17:22:52

What sort of nation would we be if we couldn't/wouldn't help those far worse off than ourselves? sad

mcem Thu 27-Jul-17 17:37:02

Dumping HS2 would be my first move before we are further mired into all the necessary next moves like cpo's disrupting homes and communities.
But then, what are the benefits?
Some people will sometimes save 20 minutes on some journeys!

mcem Thu 27-Jul-17 17:40:05

Agree tegan. Some of us have very different priorities.
Life and death are quite high on my list!

petra Thu 27-Jul-17 17:50:41

Re foreign aid. I wouldn't mind so much if it truly went to people in need. And while I appreciate that a lot does, an awful lot doesn't.
I wonder what happened to the Ethiopian Spice Girls. 'They' received over £9mil.

Tegan2 Thu 27-Jul-17 18:08:08

I need to find out more about HS2, but must admit to belonging to a 'railway family'. I'm not sure if it's totally to do with saving time. I know I once read that, because there was so much bombing of Europe during WW2 their railway system was largely rebuilt whereas ours survived and it very outdated; so it could be an infrastructure reason. I know that, after train holidays abroad [we had free travel there at one time] I was always very embarrassed to arrive home and see how shabby and unreliable our railway system was. My ex worked on the 'tilting train' which, although it was a failure was very much ahead of it's time. When I see him next I'll ask a few questions.

Tegan2 Thu 27-Jul-17 18:15:51

The contention that growth might level off and the UK never emerge from the recession as quite the economy it was, is a powerful argument for doing nothing. Such an argument usually enjoys all to ready an ear in Westminster.

Certainly the last administration dithered when it came to railways – tinkering with the structure and dragging its feet on Crossrail. Building High Speed Two will take 20 years. That the coalition government has decided to push ahead marks a new departure in British politics. It is a triumph of long term vision over short term expediency.

'High Speed Two is a statement of faith in Britain’s future. To compete with the emerging economies of China and the east and make a valuable and consistent contribution to a stable Britain needs a clear, open, transport network that promotes the free flow of freight and people.

Britain needs to stimulate commerce. In short Britain needs High Speed Two'
...this is part of something I've read. I've always felt that the railways should be used more. It was Margaret Thatcher that pandered to the road transport lobby and we ended up with everything delivered by road and not rail.

NanaandGrampy Thu 27-Jul-17 18:16:57

I am all for helping people worse off but we still pump a fortune into countries like India who have a space programme. People first is my motto and similarly Devon I believe in getting our own house in order, no pensioners eating cat food or afraid to turn on the heat. No ex military on the streets because they served their country for 22 years and then leave without the skills to be civilian.

A funded functioning NHS too?

I know - pie in the sky all of that .