Monday, October 6, 2014

UK debt and deficit: All you need to know - BBC.com

In January, British Chancellor George Osborne claimed the national debt has fallen 1/3 since 2010.  Recent studies have shown that this is false. UK's debt has been doubled to one trillion pounds in the last five years.The Office for Budget Responsibility says the deficit will keep rising. 

The Government's tax revenues are not enough to fulfill the counties large spending habits, so every year Britain runs a large budget deficit. The money the UK can't raise from taxation needs to be borrowed. Every year, this budget deficit is added to the national debt. The UK is dealing with the same problem America is. Although many citizens strongly dislike being taxed it is essential to get out of the massive amounts of debt. 

In 2009-10 the Government spent £671.4 billion of tax payers money, despite tax revenues of only £496.1 billion. Defense is fifth the most expensive area of spending. They only spend 36 billion pounds on defense. With the defense budget this low I'm surprised to how much debt they are in. In America we put aside most of our budget for defense.


 www.bbc.co.uk/news/business-25944653 

1 comment:

  1. I never realized that the UK was having similar issues to us. This problem is hard to correct as people never want to pay more taxes, however people will also object if there is any lapse in government services. It is hard to budget these things.

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