Journal: True Cost of UK National Debt

Reform, True Cost
UK Debt Story Online
UK Debt Story Online

True cost of UK debt is £86,000 per household, warns MP

CityWire

By Deborah Hyde

19 October 2009

The Conservative MP for Braintree calculates the true level of government debt is £2,200 billion (or £85,610 per household), equivalent to 157% of GDP.

He said the latest official figure of £805 billion does not take into account:

  • the full cost of projects financed through the PFI (£139 billion)
  • unfunded public sector pension liabilities (£1,104 billion)
  • contingent liabilities such as Network Rail (£22 billion)
  • the cost of recent interventions in the financial sector (£130 billion).

These hidden liabilities total £1,395 billion (100% of GDP).

See also:

Full Story Online
Full Story Online

Government debt ‘nearly three times higher than official figure’

Tom Bawden

October 19, 2009

Employers yesterday called upon the Government to get to grips with its ballooning debts as a new study put the true size of the public sector’s net liabilities at £2,200 billion, almost three times official figures.

The CBI said that the Government needed to cut its planned spending by £120 billion over the next six years, amid forecasts that official figures due tomorrow will show that total net borrowing has surged by another £10 billion in the past month.

The true level of Government debt is equivalent to 157 per cent of national output and nearly three times as large as the £805 billion figure reported by the Office for National Statistics, according to a new book published by a centre-right think tank.

Brooks Newmark, the Conservative MP for Braintree, Essex, says in The Hidden Bombshell, published today by the Centre for Policy Studies, that government debt is actually £2,200 billion. In the book, Mr Newmark argues that the UK’s public sector net debt is equivalent to £85,610 per household and in the last year has risen by £346 billion — or by £11,000 a second.