Budget News – the deficit is huge and is set to get worse

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Government finances are getting worse.  Despite the skewed headlines, the budget figures tell us the deficit is set to continue to INCREASE. Somehow the media are headlining “deficit cuts” despite the Budget 2018 predicting increases in UK debt (i.e. further deficits) of £20 billion to £25 billion per year for the foreseeable future with no sign on the horizon of any reduction in the debt.

The graph below shows the national DEBT – bigger bars are a bad thing!  If this was a limited company the directors would have had to call in the liquidators long ago.

The national debt is huge and is getting bigger.  Some commentators put UK debt at £78,000 PER PERSON. If this was a family debt “tightening of belts” and “cutting our cloth” would be severely understating things…. family and friends would urge you to “find more income where possible and spend less”….

The UK Government have decided that advice is for the birds.  Instead we are given a “get less income and spend more” Budget 2018.

We understand why people protest about cuts.  Maybe we should also protest for increased taxes – targeted of course – to fund more spending rather than simply borrowing more and more?

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Accountant

Chartered Certified Accountant with qualifications in Environmental Conservation. Specialising in Supporting sustainable business, social enterprise and charities.