Guest Post: Britain's Public Debt Doubled Again Overnight to Now £4 TRILLION
Submitted by Toni Straka of The Prudent Investor
And you still count?
It was only yesterday that Britain's societies of accountants and
5 o'clock tea, saying that - according to their calculations - the
Empire's public net debts of £2 Trillion were more than double the
This was a bad guess. It is £4 Trillion or again double that overnight,
at least according to this story in the Independent:
The true scale of Britain's national indebtedness was laid
bare by the Office for National Statistics (ONS) yesterday: almost £4
trillion, or £4,000bn, about four times higher than previously
the burden that will be placed on future generations, and it is the
ONS's first attempt to draw together the "off-balance-sheet" liabilities
that have been accumulated by the state. The figures imply a huge
"intergenerational transfer" - broadly in favour of today's "baby
boomer" generation at the expense of younger people and future
The debt primarily consists of the
cost of public sector and state pensions, and of payments promised to
private contractors under private finance initiatives. It far exceeds
any of the figures so far published for the national debt, the largest
current estimate for which is £903bn...
It appears Dagong's
"AA-" rating is closer to the reality than the "AAA" given by Western
rating agencies, who have so far only cautioned a downgrade in the
distant future for the UK.
But it still escapes my understanding how 3 major bodies can differ so
widely on the key figure of these times: total government debt.
This is understandable. Can we trust official figures anymore when they
exponentially mushroom overnight?
I have searched the reported figures on the ONS website with a blank
result for the staggering £4 Trillion number, this being the
latest on public net debt. Note the steeper curve due to bank
The Independent exclusively has these details and a sobering perspective
for future generations:
If the current generation of taxpayers wanted to remove the
higher bills facing their children and grandchildren, they would now be
paying around 30 per cent more in tax.
data strengthens the Government's hand in its attempt to pull down state
The ONS itemised the public sector's
main liabilities as:
- Future payments for
the state old age pension: £1.1 to £1.4 Trillion
- Unfunded public sector pensions for teachers, NHS staff and civil
servants: £770 billion to £1.2 Trillion
- Payments under private finance initiative contracts: £200 billion
- Contingent liabilities (eg bank deposit guarantees): £500 billion
- Nuclear power plant decommissioning: £45 billion
- Impact of financial sector interventions: £1to £1.5 Trillion
Given the wide estimates, would you be surprised if
another Trillion gets tacked on?
If you still count find the exact
figure of global debts from 2009, that figure still stands
unchanged and unchallenged.