How long will it take to repair the UK PLC balance sheet?

Over the last few weeks there has been one headline in the financial press and that is public sector spending and the massive cuts already announced by the UK government with more to follow. Many people have also been focusing upon the ever growing national debt in the UK which is now expected to top £1 trillion in the short to medium term. So how long will it take to repair the UK PLC balance sheet?

While the public sector budget will remain over £100 million in deficit for some time to come it will eventually come back down to a more manageable level. A mixture of spending cuts, tax rises and an eventual improvement in the UK economy will address this issue in the short to medium term although the payback of the UK's £1 trillion debt will take much longer. Many experts believe it will take upwards of a generation to rebalance and replenish the UK PLC balance sheet and the after effects of the credit crunch and economic downtown will be felt for many years to come.

The UK government cannot afford to repay this debt too quickly because this will take money from the public sector budget although paying back the debt too slowly will mean more government income goes towards paying the interest. It is a very difficult balancing act for future governments to address.