£2 trillion and countingOfficially, UK public sector net debt is put at £932bn. But it could be £1.13 trillion higher. That is quite an error. Who says so?
That august body The Institute of Chartered Accountants in England and Wales (ICAEW) and the Centre for Economic and Business Research (CEBR) have got together and costed the off-balance sheet liabilities that the UK has clocked up. These include public sector pensions, public private partnerships and other private finance initiatives.
Michael Izza, the ICAEW chief executive, said that it is necessary to “…… create a culture of fiscal responsibility.” You can say that again. If you came to me for a loan and told me your debt was currently X and I found it to be X times 2 and a bit, I sure would think about refusal or at best hike up the servicing cost of some more debt. Maybe those overseas buyers of our gilts will too.
JGS 16th July 2010
