Government debt is not the same as personal debt. Governments do not need to be profitable and they can spend well beyond their means. Their goal is to drive growth, not be profitable. If they were to do nothing and let it go to 0, we'd see the economy be smaller at the end than it was in the 1960s.We'd also scare away future investments and companies almost permanently. So, they have to spend to encourage growth and maintain investment, but do so in a way that allows that debt to be a healthier number over a long period of time. The only reason a government even remotely cares about its debt is due to inflation and so it can afford larger more reform size projects later. Otherwise they wouldn't care less.
These jokers have wasted and squirreled away many more billions than that. It was 18 years til the penny dropped in 1997, they can't get another term, they just can't.
A certain amount of debt is OK 100% for us is not OK This is Osborne and subsequent Tory chancellor's mess In 2006 debt to gdp was 40% by 2010 it was 62 % because of the banking crisis at no time since then has a Tory chancellor balanced the books or come up with a coherent plan to grow the economy. We've had 13 wasted years after the Browns green shoots were strangled at birth by Austerity.
There should be no tax cuts while the govt is running such a huge budget deficit, well over £100 billion/ year, with public debt of £2.6 trillion, nearly 100% of GDP. It's not enough that debt is forecast to fall as a % of GDP, because the latter is always growing, debt levels are also rising. Never in the post WWII era was public debt ever anywhere near 100% of GDP. The government is funding excessive public spending by borrowing - hardly conservative.
Under labour the banking industry was unregulated leading to the banking crisis. Gordon brown also solved recessions and sold all the UKs gold reserves at low prices. Labour arent any better.
The selling of Gold reserves only cost £17 billion. De-regulation is a right wingers dream. The global baking crisis affected the world, but in 2010 the economy was still bigger than 1997 and the UK was in less debt than nations such as Japan The U.S and Germany. Britain also had a triple A credit Rating in 2010.@@James-st9uu
When labour left office . The deficit was around 700 billion. After 14 years of the corrupt tories . I think it’s up to 1.2 trillion. The question should be . What was austerity for .
Taxes are going up fiscal drag adds £420 to everyone on the 20% threshold, don't forget ni thresholds have been frozen as well adding another £220 to that total. Real threshold should be £14350.
2027? Who can predict what will happen in the next few weeks let along in 5 years time?...Wars, weapons spending, inflation, pandemic...threw a spanner on the works
It wasn't a financial crisis though, it was monetary, and it was the whole world that didn't recover, hence the migration. As for the migration, all supposed benefits have already been plundered by those on the other side of the increasing wealth divide. Our almost non-existent NHS did get a few more staff, still inadequate to cover the shortfall that they created eh!
We had years of austerity and falling living standards to pay off the national debt, not for fiscal headroom. Policy obviously failed, there can be no other conclusion.
I think people don’t understand what uk debt is, 100 of GDP is not a lot, other countries have a lot higher GDP per capita. Also lowering tax can be very helpful as more money to spend.
The government aims for 2% inflation. But often it is much higher. If the government borrows £100bn this year and pays it back in 50 years time it pays back peanuts. This becomes a much shorter period of time if inflation runs at 10%. So where does the money come from? Anyone who has a bank deposit or other assets denominated in £s , so mainly pensioners savings. This is why governments never worry about how much they borrow so long as it is not too extreme.
Headroom of 13 BILLION POUNDS is laughable, isn't it? AND ITS MERE SPECULATION anyway, isn't it? The U.S. dollar TANKS this year: will the British pound follow suit? AND, what are THE CHANCES of that, eh? :D HOLD ONTO YOUR BONNET, I say. (Ha! Ha!) Ken, Toronto, CANADA
perhaps if they stopped spending millions on other countries and investing in their rich friend's companies we would have money for the UK
No chance
Isolationism doesn’t work
@@xxora6568spending “less” on other countries is not isolationism. I think there needs to be a balance struck.
So instead of allowing the debt to go down to 0 over time, we should spend the difference, so that we're always in maximum debt?
It’s all fake money anyway
Not only that but they're discussing what the government plans to be headroom.. its a prediction not in actuality
Government debt is not the same as personal debt. Governments do not need to be profitable and they can spend well beyond their means. Their goal is to drive growth, not be profitable. If they were to do nothing and let it go to 0, we'd see the economy be smaller at the end than it was in the 1960s.We'd also scare away future investments and companies almost permanently. So, they have to spend to encourage growth and maintain investment, but do so in a way that allows that debt to be a healthier number over a long period of time. The only reason a government even remotely cares about its debt is due to inflation and so it can afford larger more reform size projects later. Otherwise they wouldn't care less.
We have had 14 years of austerity. In order to pay down the deficit. But surprise surprise. Its quadrupled .
These jokers have wasted and squirreled away many more billions than that. It was 18 years til the penny dropped in 1997, they can't get another term, they just can't.
Just pay off the Debt!!! Then, NO wasted interest payments, much lower taxes, and increased wealth.
But it doesn't work like that does it, we all know that. Control needs to be kept 🤷♂️
A certain amount of debt is OK 100% for us is not OK
This is Osborne and subsequent Tory chancellor's mess
In 2006 debt to gdp was 40% by 2010 it was 62 % because of the banking crisis at no time since then has a Tory chancellor balanced the books or come up with a coherent plan to grow the economy. We've had 13 wasted years after the Browns green shoots were strangled at birth by Austerity.
Don't forget, Brexit dropped the value of the UK pound, lost UK trade and increased UK national debt interest rate. That has to be paid for.
There should be no tax cuts while the govt is running such a huge budget deficit, well over £100 billion/ year, with public debt of £2.6 trillion, nearly 100% of GDP. It's not enough that debt is forecast to fall as a % of GDP, because the latter is always growing, debt levels are also rising. Never in the post WWII era was public debt ever anywhere near 100% of GDP. The government is funding excessive public spending by borrowing - hardly conservative.
I remember when Labour were in power, and the Tories said if debt rose to 75% or GDP, it would be catastrophic.
So much for #ToxicTory economics. 🤣
Under labour the banking industry was unregulated leading to the banking crisis. Gordon brown also solved recessions and sold all the UKs gold reserves at low prices. Labour arent any better.
The selling of Gold reserves only cost £17 billion. De-regulation is a right wingers dream. The global baking crisis affected the world, but in 2010 the economy was still bigger than 1997 and the UK was in less debt than nations such as Japan The U.S and Germany. Britain also had a triple A credit Rating in 2010.@@James-st9uu
@@James-st9uubut his logic is still sound.
@@James-st9uu And at the time, the Tories wanted even LESS regulation.
Fiscal Headroom, is that the brother of Max Headroom?
As soon as the next crisis happens, we’ll be screwed again. Better to pay off the debt and give ourselves breathing space.
When labour left office . The deficit was around 700 billion. After 14 years of the corrupt tories . I think it’s up to 1.2 trillion. The question should be . What was austerity for .
@@George57debt is 2 trillion +
Rest of the comment is fairly accurate though
The fact their doing tax cuts with the state of services os a joke
services? what services?
all the local policestations gone, libraries gone, community centres gone, post offices good luck finding one within 5 miles.
Taxes are going up fiscal drag adds £420 to everyone on the 20% threshold, don't forget ni thresholds have been frozen as well adding another £220 to that total.
Real threshold should be £14350.
@@SlowhandGreg very true, it's like trying to drain a pool with a mug while someone filing or with a fore hose
2027? Who can predict what will happen in the next few weeks let along in 5 years time?...Wars, weapons spending, inflation, pandemic...threw a spanner on the works
If it looks like a duck, quacks like a duck and walks like a duck, then its a bloody duck. Recession is here 😮
The uk isn’t in debt we owe nothing
The UK never recovered from the 2008 financial crisis and importing millions of 3rd world immigrants has only made it worse
Or white people made it worse not immigrants
That’s a fact.
It wasn't a financial crisis though, it was monetary, and it was the whole world that didn't recover, hence the migration.
As for the migration, all supposed benefits have already been plundered by those on the other side of the increasing wealth divide. Our almost non-existent NHS did get a few more staff, still inadequate to cover the shortfall that they created eh!
We had years of austerity and falling living standards to pay off the national debt, not for fiscal headroom. Policy obviously failed, there can be no other conclusion.
Why is he "dancing" around like that?
Probably drawing a pentagram with his feet.
@@tikkiu7345good one 😂
He forgot to pee
@@grrarg9319 maybe he's hoping "Strictly" producers are 👀
I think people don’t understand what uk debt is, 100 of GDP is not a lot, other countries have a lot higher GDP per capita. Also lowering tax can be very helpful as more money to spend.
Let's face it. the debt ratio in 2029 is way too long to predict, too many variables. I'm sure nobody in 2019 thought it would be nearing 100% now..
Look at the income from wind farms rents the national grid made billion this year's?
The government aims for 2% inflation. But often it is much higher. If the government borrows £100bn this year and pays it back in 50 years time it pays back peanuts. This becomes a much shorter period of time if inflation runs at 10%. So where does the money come from? Anyone who has a bank deposit or other assets denominated in £s , so mainly pensioners savings. This is why governments never worry about how much they borrow so long as it is not too extreme.
Max Headrooms cousin
1:23 So, a couple of pennies.
Great. Abolish Inheritance Tax
No but the very wealthy pay it
this is the funniest comedy show i have ever seen. why is it in news
Include war factor?
He said that as though he already knows Labour will be in power soon.
Ofc he does, actors get the script early.
Trying to explain these complex ideas in layman’s terms but it is comedically poor! 😅why is he jumping around like a spaz?!
I'm sure Jermey's CCP handler will be advising.
Headroom of 13 BILLION POUNDS is laughable, isn't it?
AND ITS MERE SPECULATION anyway, isn't it?
The U.S. dollar TANKS this year: will the British pound follow suit?
AND, what are THE CHANCES of that, eh? :D
HOLD ONTO YOUR BONNET, I say. (Ha! Ha!)
Ken, Toronto, CANADA
Poor so poor hahaha
Ye because they give all the money to Ukraine