Conservative MP Brooks Newmark in his report, "The Hidden Bombshell", published by the Centre for Policy Studies, reckons that the UK government debt has soared to almost three times the official figure to £2,200bn. That’s the equivalent of £85,610 per household.
How does Newmark arrive at this figure? He claims that the official numbers don’t include the full cost of private finance initiative (PFI) projects, which he reckons add £139bn to the public debt.
Also, he says, unfunded public sector pension liabilities – i.e. where no cash has been set aside – have been left off the Treasury figures. But the government will have to pick up the tab here, adding a further £1,104bn. So-called contingent liabilities – possible future obligations – such as Network Rail, add another £22bn, while Mr Newmark counts the cost of recent financial sector interventions at £130bn. In total, £1,395bn of “hidden liabilities” is added to the £805bn official figure.
How does Newmark arrive at this figure? He claims that the official numbers don’t include the full cost of private finance initiative (PFI) projects, which he reckons add £139bn to the public debt.
Also, he says, unfunded public sector pension liabilities – i.e. where no cash has been set aside – have been left off the Treasury figures. But the government will have to pick up the tab here, adding a further £1,104bn. So-called contingent liabilities – possible future obligations – such as Network Rail, add another £22bn, while Mr Newmark counts the cost of recent financial sector interventions at £130bn. In total, £1,395bn of “hidden liabilities” is added to the £805bn official figure.
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