OECD growth forecast puts UK in 6th place

Rochdale_Pioneers

worldtraveller wrote: »

Are you kidding? UK public sector net debt will exceed £1 trillion in the 2011-2012 fiscal year and is likely to continue to increase to £1.3 trillion by the end of the 2015-2016 fiscal year on current projections, and we all know how these are more than likely to be adjusted upwards.

According to the Office for Budget Responsibility, in the fiscal year just ended, gross government interest on debt was £43.1 billion. Interest payments will be the equivalent of more than half of the education budget and 40% of the health budget.

Roll it up....We can afford it....not!

You do know that we're paying less as a % of GDP in debt interest now than we were through most of the last 30 years?

Noone is arguing that its a good thing to spend money on. But "can't afford it?" We could afford it before when it was higher....

stueyhants

Interesting debate between Ed Balls and Evan Davies on R4 this morning. Evan put to Ed that every extra £1 of spending (i.e. more deficit) would only generate around 30p of growth in the economy (think the figures were sourced from the OBR). Therefore was was the point of delaying cuts now if the return on investment was so poor. As you can guess he didn't have an answer.