The Daily Cost of Servicing Our Debt

This diagram graphically represents the size of our daily spending on servicing our debt in comparison with our daily spend on other areas.    It is a sobering reminder ahead of today’s budget of why eliminating the structural deficit must be a priority.   The depressing thing is that controlling the deficit will not change the daily interest on the existing debt – it’ll just stop it getting bigger and bigger.   We’re going to be paying for the party in the 90s for a long, long time to come.

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3 Comments

Filed under Economy, UK, UK Politics

3 responses to “The Daily Cost of Servicing Our Debt

  1. scandalousbill

    The viewpoint stated is simplistic and wrong. The notion of the party of the 90s in particular, simply ignores the impact of bailing out the banks and QE. Do you seriously believe that if these actions were not taken, the resultant depression would have not impacted a great many lives?

    • BW

      Sir Fred Goodwin’s life was certainly affected when RBS was bailed out. He walked away with a terrific pension for failure. This type of bailout to serve the well connected is the antithesis of capitalism. Protect depositors to prevent banking runs..sure..but why protect Sir Fred at the expense of the UK taxpayer?

      And on the basis of “impacting great many lives”, why not also bail out Woolworths, Habitat and Thomas Cook? What criteria do you use to assess whether the state should intervene and bail out a firm? How many small business get bailed out? Will Guy be bailed out if his small business doesn’t work out? I think we know the answer!

  2. How does it ignore bailing out the banks? Neither the bank bailout nor QE alter that we got to a place where we were spending four pounds for every three we brought in.

    Your point seems to be like saying ‘you can’t blame the hangover on the drink, because I never expected to have that last vodka’.

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