How many years or a decade or more for the UK to pay off it'
Discussion
Were not a long way from 4 years since the credit crunch.
Clearly there was a lag before te full impact hit us maybe we now believe it will be fully hit by 2015/16??
Anyway the question is how long assuming that is the correct date will the UK be sovrign debt free? The tiger nations suffered our problem in 1997 but are now in mega surplus and lending their surplus to other govts.
What I would like to see is the country clear it's sovrign debt and then continue tp the point that mortgage free is the situation for so many more people as such by that time they can then choose to spend on consuming goods or lovely holidays and for their pension age.
Also is buy to let going to be the real option for handing a house over tp our kids without them having to live with mum and dad or rent into their mid 30's?
Clearly there was a lag before te full impact hit us maybe we now believe it will be fully hit by 2015/16??
Anyway the question is how long assuming that is the correct date will the UK be sovrign debt free? The tiger nations suffered our problem in 1997 but are now in mega surplus and lending their surplus to other govts.
What I would like to see is the country clear it's sovrign debt and then continue tp the point that mortgage free is the situation for so many more people as such by that time they can then choose to spend on consuming goods or lovely holidays and for their pension age.
Also is buy to let going to be the real option for handing a house over tp our kids without them having to live with mum and dad or rent into their mid 30's?
johnfm said:
Why do you think a government will want to be free of sovereign debt?
How do you think they will fund capital investment in infrastructure etc that have 40+ year lifespans?
By having tax revenue greater than the normal annual outgoings ie save up for it at a State level then buy it. How do you think they will fund capital investment in infrastructure etc that have 40+ year lifespans?
Sure that could never happen over night but over time as debt is decreased and of course continual investment goes on then it's possible.
Also if we ignore the last decade all the infrastructure investment has it really delivered?
Channel Tunnel - um ???
Millennium dome?
Extending the M4 further west past Cardiff but not as far as Fishguard where the docks are...
Concorde....
NHS IT database...
Aircraft carriers....
The UK car industry... Or rather the mass Market car industry.
What we should be and should have spent money on
1. Tidal energy barrier on the Severn estuary and elsewhere where it would be suited
2. Govt investment in Nuclear power stations (replacing existing stock and increasing our home grown energy not leaving it up to the private companies)
3. Heathrow additional runway
4. Electrification of the railways
5. Continual and accelerated renovation or the road network blitz it rather than months of agony in congestion make it weeks
6. Stately home investment and castles which are falling down. This is part of our heritage and a big tourist draw. Renovate them and save them - lots of these are in localities with little job opportunities so the renovation (and hand over to national trust) and then the ongoing tourism will help boost those areas
7. Scrap tuition fees that's an investment that the country really needs. That's the future we need them.
8. Uk wide wireless internet access at much higher speeds that opens up employment in many areas where currently they only have tourism or public sector.
9. Grants for companies to build a production line in an area or areas with long term high unemployment.
loafer123 said:
Debt free is probably not a good plan, as it would imply a complete lack of investment for a long time, but a substantial repayment to a more sustainable level makes sense.
We are currently at ~£1trn. Half that would be nice.
At that point there are options either continue to eliminate our sovrign liabilities or we could look ST tax revenue reduction which may in turn result in more companies moving to the uk and individuals spending more resulting in stronger growth. We are currently at ~£1trn. Half that would be nice.
Plus of course once the debt is cleared we could build up a provision to pay off the PFI none of which have worked and are costing us a fortune and also create a state pension fund and also a public sector pension fund.
I would say once we have achieved that the strength of the £ would soar maybe $15:£1...
our current tax revenues are about £600mio
Without borrowing for capital projects, we would need to cut spending to virtually nothing. A single nuclear power station will cost circa £2000 million or more, no?
So, if we could get total pulbic spending down from its current level of nearly £800 bio to £400 bio, it would take 10 years for the UK to 'save up' for one nuclear reactor.
But we need to pay pensions, have schools, police, fire services, an army - so getting public spending down to £400 bio is going to be a challenge.
Without borrowing for capital projects, we would need to cut spending to virtually nothing. A single nuclear power station will cost circa £2000 million or more, no?
So, if we could get total pulbic spending down from its current level of nearly £800 bio to £400 bio, it would take 10 years for the UK to 'save up' for one nuclear reactor.
But we need to pay pensions, have schools, police, fire services, an army - so getting public spending down to £400 bio is going to be a challenge.
Edited by johnfm on Sunday 4th December 21:15
johnfm said:
our current tax revenues are about £600mio
Without borrowing for capital projects, we would need to cut spending to virtually nothing. A single nuclear power station will cost circa £2000 million or more, no?
So, if we could get total pulbic spending down from its current level of nearly £800 bio to £400 bio, it would take 10 years for the UK to 'save up' for one nuclear reactor.
But we need to pay pensions, have schools, police, fire services, an army - so getting public spending down to £400 bio is going to be a challenge.
From memory a neuclesr power station is £2-5billion. Without borrowing for capital projects, we would need to cut spending to virtually nothing. A single nuclear power station will cost circa £2000 million or more, no?
So, if we could get total pulbic spending down from its current level of nearly £800 bio to £400 bio, it would take 10 years for the UK to 'save up' for one nuclear reactor.
But we need to pay pensions, have schools, police, fire services, an army - so getting public spending down to £400 bio is going to be a challenge.
Edited by johnfm on Sunday 4th December 21:15
Our tax revenue is c£600billion currently outgoings c£150billion more than that.
There is no plan for the uk to have no sovereign debt. Because that wouldn't be possible.
Trying to eliminate the deficit is the current plan, and even that is proving a massively arduous task, greatly compounded by the EU crisis.
Still, we're on the right track, relatively speaking. Recently, yields on 10yr Gilts were even briefly lower than the Bund.
johnfm said:
exactly.
So if expenditure was nearly halved to £400 mio, it would take ten years to afford a power station.
Just doesn't work.
Think you are still getting your m and b confused, easily done I know.So if expenditure was nearly halved to £400 mio, it would take ten years to afford a power station.
Just doesn't work.
Getting spending of £800 billion down to £400 million would be great if achievable, but...
RYH64E said:
johnfm said:
exactly.
So if expenditure was nearly halved to £400 mio, it would take ten years to afford a power station.
Just doesn't work.
Think you are still getting your m and b confused, easily done I know.So if expenditure was nearly halved to £400 mio, it would take ten years to afford a power station.
Just doesn't work.
Getting spending of £800 billion down to £400 million would be great if achievable, but...
FAOD - I meant get expenditure down to £400bio
RYH64E said:
johnfm said:
exactly.
So if expenditure was nearly halved to £400 mio, it would take ten years to afford a power station.
Just doesn't work.
Think you are still getting your m and b confused, easily done I know.So if expenditure was nearly halved to £400 mio, it would take ten years to afford a power station.
Just doesn't work.
Getting spending of £800 billion down to £400 million would be great if achievable, but...
FAOD - I meant get expenditure down to £400bio
johnfm said:
exactly.
So if expenditure was nearly halved to £400 mio, it would take ten years to afford a power station.
Just doesn't work.
Power station is c£2-5 billionSo if expenditure was nearly halved to £400 mio, it would take ten years to afford a power station.
Just doesn't work.
Current Tax revenue is c£600billion
Current spending is c £750billion (hence the defecit of c£150 billion).
I'm ot sure of your background but if you think a Nuclear power station costs £2 trillion then I'd like to introduce myself to you as a middle man who will sell you anything you desire - please ask for what you want and I will give you a good price
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