Feb 07 2008
£25 billion and still counting
I welcome the government’s decision to place the Northern Rock debt on the government’s own balance sheet. It always belonged there, as the Bank of England is wholly owned by the Treasury on behalf of taxpayers.
It is there as a reminder of the importance of getting this money back as quickly as possible. It does not help the government’s fianancial standing, given the high level of new borrowing being undertaken.
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John Redwood has been the Member of Parliament for Wokingham since 1987. First attending Kent College, Canterbury, he graduated from Magdalen College...
Apologies for this being totally off topic but I have just read that Gordon Brown is being accused of Breach of Contract by Stuart Bowers of UKIP for reneging on the Labour manifesto promise to hold a referendum on the EU Treaty. Is there any chance this might delay or alter the imposition of Europe on the UK?
Reply: I doubt it!
The true balance sheet would also include the billions of Public Private Finance liabilities, not to mention the liability for billions for public sector occupational pensions.
Yes, indeed it would. The Economic Policy review attempted to quanify this and came up with a figure of £1.3 trillion of state debt and obligations.