Tuesday, July 20, 2010

UK debt is 'twice as much as we thought'

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The true scale of the national debt is £2 trillion - more than twice the official figure, an alarming study shows.

The black hole in the public accounts equates to £78,000 for every household in the country.

The 'real' state of the national finances is exposed in a study published today by the Centre for Economics and Business Research, which warns of a series of mammoth debts that aren't revealed by the official figures.

The national debt - forecast to reach £932m by next spring - does not include a number of expensive liabilities, such as the cost of civil service and town hall pensions and projects funded under the Public Finance Initiative.

Putting these liabilities into the official figure would add £1.13 trillion to Britain's whopping overdraft, according to CEBR.

Under the worrying scenario, the debt would jump from 62% to 138% of Britain's income.

In its study, CEBR warned that the Government cannot formulate a plan to revive the economy while the liabilities remain hidden.

Read more: http://www.thisismoney.co.uk/news/article.html?in_article_id=508582&in_page_id=2&expand=true#StartComments#ixzz0uChdQxiJ

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