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How long will it take to pay back government borrowing?

The subject of excessive government borrowing to try and refloat the UK economy is never far from the headlines with literally hundreds of billions of pounds spent over the last few months. While nobody really ever talks about how this money could be repaid there is no doubt that it will take literally years and years to replenish the government budget. So how exactly can a future government repay a debt which is set to reach £1 trillion?

The main repayment method for the government is to increase the tax on UK workers and the consumer via direct and indirect taxation techniques. The ideal scenario is one which sees the UK economy recover and continue to grow which will allow the government to increase taxes and replenish the national budget. In reality the amount of money which is outstanding cannot be collected in just a couple of years and many experts are suggesting it will take nothing less than a decade to balance the UK books again.

Rather bizarrely, the UK taxpayer has already taken a massive hit due to the growing number of rescue packages but is set to take an even larger hit in the future to try and repay the debt. Future UK governments will no doubt suggest cost savings in the public sector but these will have little impact on a debt which has reached £1 trillion.

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