Within four years, almost 9p in every pound of tax paid by British individuals and companies will be spent directly on servicing the Government's debt, rather than on services such as hospitals and police, or the costs of running defence or the welfare state, according to new calculations. At present, the debt interest costs an average of around 5p for every pound in tax.
The National Institute of Economic and Social Research said that costs of servicing government debt will rise from £25.6bn this fiscal year to £50.7bn in 2013/14, due to a combination of higher interest rates and a far greater debt burden. The warning underlines the cost facing taxpayers as the Government debt rises at the fastest rate in peacetime history.
Remember our last budget. Big Al stood up, Gordon in the background having written his speech for him and we held our breath, what is he going to say......
.....and following poured forth from his mouth.
He predicted that the UK would see growth of 1.25% next year and 3.5% the year after that.
He then based all budgetary consideration for the next five years on that assumption.
Did we rejoice.......NO
Did we think what a load of sh*t......YES
3.5% ....... in our hayday we only ever saw a growth rate of 2.9% max. So how the hell you go from zero to hero inside of 18 months made us realise that it was all just lies.
And the figures today just go to reaffirm that it indeed was just lies.
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