Are UK taxpayers getting a raw deal from the government?
With rumours that the UK government is set to spend more taxpayers money on a potential bailout for the car industry as well as rumours of further funding issues for the UK banks, there are many who are now starting to question the use of taxpayer funding. So far, despite a multibillion pound rescue package for the UK financial sector, the consumer has yet to see any credible return or improvement in markets.
While there is a need to invest some funds into the UK economy, when we start talking in the hundreds of billions of pounds there really is a need for taxpayers to see what is happening and what returns they can expect. So far we have seen the government take over Northern Rock, take over part of Bradford & Bingley and also shell out tens of billions of pounds directly into the UK banking industry. While these stakes in UK banks may turn out to be very profitable in the future there are no guarantees and many suspect the UK government would look to dispose of its investments at the earliest credible opportunity.
Taxpayers need to see how their funds will be replenished and what kind of returns they can expect.
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