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09-07-2020, 04:10 AM
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Coronavirus: Public spending on crisis soars to £190bn

https://www.bbc.co.uk/news/business-...eporting-story

I had been wondering about the government's profligate expenditure on "projects" to contain the effects of the coronavirus panademic .....

Before the coronavirus outbreak began, the government was expecting a deficit of £55bn.

The chancellor announced a £30bn package to combat the crisis in his summer statement on Wednesday.

With this announcement, the total is nearly £3,000 for every person in the UK - and more than the entire planned health budget for 2020-21.

It means the cost of the crisis has risen by more than 40% since last month, when the government's spending watchdog, the Office for Budget Responsibility, estimated it at £133bn.

This extra spending is likely to push the gap between what the government spends and what it raises in taxes - the deficit - above the OBR's latest estimate of around £300bn, according to the influential Institute for Fiscal Studies think tank.

It's equivalent to a bigger slice of the economy than at any time since the Second World War. The government is currently borrowing record amounts on the financial markets to plug the gap but, at some point, there will have to be a discussion about how the government pays this back.

Of course, it's inevitable that he figures will be under-estimates so that the future for tax-payers, when the crisis is "over", looks bleak indeed .....
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09-07-2020, 06:32 AM
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Re: Coronavirus: Public spending on crisis soars to £190bn

We may get a Liam Byrne-esque note.
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09-07-2020, 10:10 AM
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Re: Coronavirus: Public spending on crisis soars to £190bn

Originally Posted by Omah ->
https://www.bbc.co.uk/news/business-...eporting-story

I had been wondering about the government's profligate expenditure on "projects" to contain the effects of the coronavirus panademic .....




Of course, it's inevitable that he figures will be under-estimates so that the future for tax-payers, when the crisis is "over", looks bleak indeed .....
Probably much less than our payments to the EU?
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09-07-2020, 10:17 AM
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Re: Coronavirus: Public spending on crisis soars to £190bn

Originally Posted by Tedc ->
Probably much less than our payments to the EU?
AFAIK, you're wrong ..... but this thread is not about the EU .....
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09-07-2020, 10:21 AM
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Re: Coronavirus: Public spending on crisis soars to £190bn

Spending does not matter, in a "Cashless Society".
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09-07-2020, 02:54 PM
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Re: Coronavirus: Public spending on crisis soars to £190bn

Originally Posted by Tedc ->
Probably much less than our payments to the EU?
UK's net contribution being £ 11 bn, assuming 50% of you pay tax, that amounts to £ 26/month/tax payer. Next year you will pay that amount per month less in taxes, due to leaving the EU.
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09-07-2020, 03:04 PM
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Re: Coronavirus: Public spending on crisis soars to £190bn

Originally Posted by Solasch ->
UK's net contribution being £ 11 bn, assuming 50% of you pay tax, that amounts to £ 26/month/tax payer. Next year you will pay that amount per month less in taxes, due to leaving the EU.
Worth very much more to regain our independence.
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09-07-2020, 03:14 PM
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Re: Coronavirus: Public spending on crisis soars to £190bn

Originally Posted by Omah ->
https://www.bbc.co.uk/news/business-...eporting-story

I had been wondering about the government's profligate expenditure on "projects" to contain the effects of the coronavirus panademic .....




Of course, it's inevitable that he figures will be under-estimates so that the future for tax-payers, when the crisis is "over", looks bleak indeed .....
So you would have preferred they spent nothing?
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09-07-2020, 03:25 PM
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Re: Coronavirus: Public spending on crisis soars to £190bn

It's something of a sticky wicket isn't it.

Most folk accepted furlough as they were given 80% of their pay.
I admit, at the time I thought it was over generous .. though I have no answers or credible alternative because the government, at the time, had to reassure people they wouldn't suffer because of lockdown.

Since then there seems to have been a deluge of promises after promises to kickstart the economy ... even whilst covid hasn't gone, has only abated and is expected to come back in wave after wave.

I understand it'll take decades to recover ... and can believe it.
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09-07-2020, 04:32 PM
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Re: Coronavirus: Public spending on crisis soars to £190bn

Originally Posted by Vlad ->
So you would have preferred they spent nothing?
No ..... but, as I said, I have been wondering about the cost of the government's borrowing.

For example, there are now 9,300,000 people on furlough, being paid up to £2500 pm. This has now been supplemented by the plan to pay employers £1,000 for every furloughed worker they retain past January, which could cost £9.4bn, bringing the cost of furlough to £100bn.

Billions of borrowed money are being spent like water with no idea of how long or how deep the pandemic and the associated recession will be.

It's probable that the UK debt will rise to £350bn and possible that it will rise to £500bn - a war-like debt to accompany the war-like number of civilian dead that the government allowed to happen.
 
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