How much has the UK recession cost us?
While it is very difficult to comprehend the billions upon billions of pounds being mentioned in budgets, national debt and other discussions, how much has the UK recession cost UK taxpayers?
One way to look at this particular subject is to look at government debt and how this is financed. To give an example of where we are at the moment, it will cost the UK government a massive £27.2 billion this year to pay the interest on debt which has been accumulated during the recession. However, while you may think this figure is enormous it will cost the government nearly £64 billion to finance the national debt in the tax year 2013/14. This is the combined budget for the defence Department and the transport Department for the current tax year!
It is easy to forget how much debt the UK government has been forced to take on and the massive increase in interest payments. When you also balance this against the need for the UK government to retain its Triple-A rating in the money markets, otherwise interest costs will increase yet again, this is to say the least a very difficult balancing act. One false move could literally bring the UK finances crashing down.
Share this..
Related stories
Artist Tracey Emin threatens to leave the UK
Well-known artist Tracey Emin is apparently on the verge of leaving the UK and moving to France because of the ever increasing income tax rates in the UK and general cost of living. The UK government is set to bring in a 50% tax band which will hit UK earners bringing in more than £150,000 a year. Miss Emin believes that when you take into account the new tax band, national insurance and other co...
Read MoreGordon Brown considering emergency tax cuts
As we commented upon yesterday there is growing speculation that Gordon Brown is considering up to £15 billion in tax cuts in the UK at a time when the economy appears to be plunging from disaster to disaster. However, while the speculation grows about possible tax cuts there is growing concern about how this move would be funded and the ultimate aim of such a program.
The Tory par...
Is the UK government passing the regulatory buck?
Despite the fact that the Bank of England has been central to the UK regulatory system for hundreds of years it is noticeable that in today's White Paper regarding regulatory changes in the UK there were no new powers for the bank. Instead the UK government has chosen to increase the stature and power of the FSA (Financial Services Authority) amid accusations that the government has more power and...
Read MoreCould UK government borrowing hit £180 billion next year?
The renowned Ernst & Young Item club has caused controversy in government circles today by suggesting that net borrowing could rise to an incredible £180 billion in the next tax year. This far exceeds the forecast for the 2009/10 tax year released by the Treasury only a few weeks ago. Ernst & Young believe that the UK economy and public finances are deteriorating at an alarming rate which is set...
Read MoreUK savings market seems to be turning
UK savers have taken a significant battering over the last few months with a number of savings accounts offering near 0% interest at a time when cash is king. However, Close Brothers , a London-based bank, and Birmingham Midshires may well be about to shake up the savings market with a couple of interesting introductions which are sure to catch the eye of savers around the UK.
Close...