UK budget deficit third worst in the world
The OECD has today issued a league table showing budget deficits around the world as a percentage of Gross Domestic Product (GDP). While the top two entries in the table will come as no surprise, Iceland at 15.7% and Greece at 12.7% it is the position of the UK (third place) at 12.6% which has laid bare the terrible financial impact which the downturn has had on the country's finances.
It looks even more alarming when you consider that Ireland at 12.2%, Spain at 9.6% and Portugal at 6.7% are being spoken about in the same breath as Greece which is on the verge of economic collapse. While it is highly unlikely that the UK is on the verge of collapse there is no doubt that with over £1 trillion of national debt to be paid back and financed in the future, the UK economy will take some time to recover.
When you also throw into the mix the fact that UK consumers also have debts of over £1 trillion the situation becomes even more alarming. Even though there is little or no risk of the UK economy crumbling and collapsing it will take many years to replenish and rebuild the country's financial strength which will impact upon both the cost of living and the standard of living in the UK.
Share this..
Related stories
Why Is There No Talk Of Tax Cuts?
As the economy lurches from a slow down into a full blown recession it would have been reasonable to expect talk of tax cuts and returning money to the UK population. However, tax cuts have never been further from the table with many even suggesting that the UK is braced for another round of tax increase. But does this make sense?
The truth is that the UK public purse is in such a...
Could 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 MoreDavid Cameron clearing the decks for a massive overhaul of public spending
David Cameron has today cleared the decks of the UK financial situation by confirming that UK national debt will increase to a staggering £1.4 trillion over the next five years. His estimate that interest charges alone will peak at £70 billion is another staggering fact which many in UK will be totally unaware of. There is a feeling that amidst the anger and shock about the figures in question D...
Read MoreCan the Conservatives win the next election?
As more and more people turn against Gordon Brown's Labour government the focus is starting to turn towards David Cameron's Conservative party and their potential for making the next government. One factor which has been thrown towards the Conservative party for some time now is a lack of detail to go with regard to their economic policy, should they finally make office.
David Camer...
UK pensioners missing out on tax breaks
Official data from the National Audit Office has revealed that 3.2 million pensioners in the UK are failing to take up their full tax allowances, 2.4 million are paying too much tax on their savings and more and more pensioners in the UK are frightened to ask for help. In a sign of the times it seems as though the ever more complicated UK tax system is causing more problems amongst pensioners in t...
Read More