How can the UK government pay back £1.3 trillion?
As the UK economy continues to show fluctuating and indifferent performance figures there is growing concern about how the UK government will be able to pay back national debt which now stands at over £1.3 trillion. These are figures which nobody outside of the government and the Bank of England can comprehend and will literally take decades to repay. So how will the government pay down this enormous debt?
The major income streams for the UK government come from taxation and the sale of national assets. Therefore it is highly likely we will see a massive increase in taxation in the short, medium and longer term and we could see some of the UK's more treasured assets sold off and privatised. This is a damning indictment of Gordon Brown's tenure at the Treasury and Number 10, the impact of which will literally be felt generations down the line.
Despite what the authorities may tell you there is no quick fix to this growing debt problem and there are serious concerns that if the worldwide economy was to take a further downturn in the short to medium term the UK economy could collapse. While this is unlikely it is always a scenario which follows in the background and casts a further shadow over the recovery prospects of not only the UK economy but also UK national debt.
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