ConDems will solve the deficit

[DimPrawn]

Public finances disappoint at start of fiscal year | Reuters

Britain's public finances made a disappointing start to the fiscal year as weaker tax receipts and higher spending led to the worst borrowing tally for a month of April on record.

Public sector net borrowing came in at 7.7 billion pounds last month, around 2.5 billion pounds higher than a year ago and the worst reading recorded for a month of April, according to the Office for National Statistics.

The government's preferred measure of borrowing, which excludes financial sector interventions, also notched a record high at just under 10 billion pounds.



Spend spend spend.

Time the all talk and no walk govt actually fired 90% of the public sector rather than following New Labour's policies on tax and spend.

[Old Greg]

Public finances disappoint at start of fiscal year | Reuters

Britain's public finances made a disappointing start to the fiscal year as weaker tax receipts and higher spending led to the worst borrowing tally for a month of April on record.

Public sector net borrowing came in at 7.7 billion pounds last month, around 2.5 billion pounds higher than a year ago and the worst reading recorded for a month of April, according to the Office for National Statistics.

The government's preferred measure of borrowing, which excludes financial sector interventions, also notched a record high at just under 10 billion pounds.



Spend spend spend.

Time the all talk and no walk govt actually fired 90% of the public sector rather than following New Labour's policies on tax and spend.

Nationalise all government bonds. That will deal with the debt. The deficit will sort itself out somehow once no-one's prepared to lend anymore.

[AtW]

Liebor Govt signed up for contracts that will be financed now and in future years, all that requires money, also cuts have not started yet and might never start proper before next election (year wasted already).

[Old Greg]

Liebor Govt signed up for contracts that will be financed now and in future years, all that requires money, also cuts have not started yet and might never start proper before next election (year wasted already).

Legislate to invalidate the contracts. Parliament is sovereign.

[DimPrawn]

Legislate to invalidate the contracts. Parliament is sovereign.

Probably find most of the contracts are with companies owned, run or for the benefit of family members of those in parliament, if you see what I am getting at.

Look at Bliar and his greasy hands on a much loot as he could pocket in power and after he left.

[Old Greg]

Probably find most of the contracts are with companies owned, run or for the benefit of family members of those in parliament, if you see what I am getting at.

Look at Bliar and his greasy hands on a much loot as he could pocket in power and after he left.

Agreed. In which case we have a democratic deficit and must take matters into our own hands.



Or gripe slightly on the Internet.

[AtW]

Legislate to invalidate the contracts. Parliament is sovereign.

Investors will vote with their money and sell off gilts - pound will drop, gilts won't be sold (so more money printing).

That would have lasting damage for decades, that's why it is usually better choice to assume debts of previous Govt rather than default on them.

And in any case you overestimate what Parliament can do - it can't even deal with trivial question of super injunctions, never mind giving Govt power to deport suspect terrorists who are not even UK citizens - courts seem to wield a lot more practical power.

[Old Greg]

Investors will vote with their money and sell off gilts - pound will drop, gilts won't be sold (so more money printing).

That would have lasting damage for decades, that's why it is usually better choice to assume debts of previous Govt rather than default on them.

They can't sell off gilts because they've been nationalised. You just need to work out a way of not borrowing any more. - i.e. deal with the deficit, which will be lower once interest payments are removed.

[DimPrawn]

Pound is going to tank further on this news and credit rating agencies will be rubbing their hands with glee at the prospect of a downgrade here.

[AtW]

You just need to work out a way of not borrowing any more. - i.e. deal with the deficit, which will be lower once interest payments are removed.

Too much of current spending is financed by debt, so you can't just put on hold a few big projects and stop borrowing.

Maybe this sort of tulip can be done in a euro zone because currency won't be devalued much, but given that UK is on its own with sterling it simply does not have this option. They'd rather print money than default - which is precisely what happens now.