Watch now (14 mins) | This week's official fiscal report for June reveals that no less than four-fifths of the money the UK government is borrowing is now being spent on interest payments on existing debt
After reading that I need a cup of tea to raise my spirits.
The facts are sobering but dare I suggest that the root causes be looked at.
All I can say as an 81 year old Englishman is that I was only briefly unemployed, always paid my taxes, cost the NHS very little and, as we were once allowed to say, generally "played the white man". I saw the way things were going in the UK and moved abroad.
Now I am made to feel guilty for drawing my state pension while total strangers from totally alien parts of the world are illegally entering the country of my birth, ably assisted by the agencies of government, and housed in hotels at the taxpayer's expense.
It's a funny old world. It just does not feel funny.
Glad you are back to make sense of the mad, mad economic world. Why are our politicians blind to reality - ideology or stupidity? I look forward to reading and watching (and seeking to understand) more.
It does make you wonder, I've listened to Liam a lot, and he explains things in a way us laypeople can understand and can see how serious the situation is. But the government seems blind to what is staring them in the face and they either don't listen to what experts say, or think arrogantly they know better.
It’s more fundamental Liam. They do not trust nor believe in a “nation of shopkeepers”. Tories and Labour think that business is big corporations with “employees”. Not self employed or contractors or entrepreneurs or anything else. So when you try and steer the economy to fuel organic growth and productivity of these risk takers, essentially, all Labour and the left see are “pirates”, “rich scammers” not people working hard.
And in having this twisted socialist belief they pull everyone down to the poverty level.
Given SME's contribute 45% to GDP it follows that corporations contribute 55%, conclusion, both are equally important. The difference is corporates spend more time schmoozing Government and talking the minestrone words of corporate management speak that means nothing and contributes nothing to productivity, while SME's get on with growth.
Back when they closed a lot of the old reactors the locals in those areas were begging the state to build new reactors on the same sites because they gave a lot of high paid and secure jobs. Sadly the govt knew better and went for gas only because it was cheaper and cleaner. Then they decided burning gas was “bad”. If only we had someone in govt with enough of a brain to work out an energy mix is always the best option.
Discussion of tax rates should take into account student loan debt with interest payments pegged over the rate of inflation. Any moderately successful graduate is now saddled with what is effectively an additional income tax rate for the whole of their working lives. This will have a significant drag on economic growth growing forward. I have no doubt that this is an economic disaster in the making.
Good point, and no doubt outstanding amounts on Covid bounce back loans are still exerting a further drag on the economy. It would be interesting to see stats on how much of these loans remains to be repaid
Very true. I presume the student loan book is another an off balance sheet liability for the Government. In 2052 when the plan 2 loans start to expire, the government will have to start writing off the debts that are not going to be repaid.
We are heading fast towards a sterling debt crisis just like 1976 but this time there will be no one to save us. The one silver lining is that pretty damn soon there will be no alternative but to look to Buenos Aires, create our our own post it notes of whole areas to abolish with a cry if ‘afuera’ !
Why is there so much economic illiteracy / idiocy in our politicians, civil service and media class? Some of them must have studied the basic principles of economics and seen what happened in the past?
As you say the fiscal crisis is much closer than it was a year ago. TBH if this is the only way to sort a lot of our structural issues out then this seems to be Labour’s inadvertent strategy… which will profoundly impact the people they talk about representing. Ironic indeed
Meanwhile the Labour government hides its head in the sand with its tired “it’s all because of 14 years of Tory failure”. They’re choosing to stare at the rear view mirror and ignore the imminent head on collision. Why are the media, not to mention the opposition, allowing them to get away with it?
Matthew Laza isn’t correct in saying only a few companies in the world can build nuclear power stations.
America (and others) can build these, tried and tested, earthquake proof too (which we obviously don’t need in the UK), at 6-8 billion. The UK could have two for the old price of Sizewell C, and in less than 5 years!
Like many probably, I fondly imagined that national debt could be eroded over time by inflation, but I had no idea UK government(s) have been accepting so much index-linked credit! 30%?! What were they thinking? It's absolutely mental!
It does seem as though a financial meltdown is on its way and to be honest I think it’s what we need. Neither the politicians or the voters (at least most of them) are in a dreamworld and a crisis will bring home the mess we are in. The government in power when this happens will get the blame so I hope it happens before 2029.
With the revival of James Cleverly I do fear the Tories haven’t learnt anything yet. This leaves Reform as our hope but their recent spending promises scares me. Farage needs to speak to you Liam and they need a good economic advisor, again Liam would fit the bill.
Very depressing but we have to hold on and hope we get a government to turn the ship around.
As ever a concise and factual report on the true state of the UK economy which is seriously concerning.
As an ordinary chap with an interest in economics and a successful commercial career without the benefit of a degree, if I can grasp the facts and conclude that we need to make cuts to spending and our Chancellor, Treasury Officials, Governor of the Bank of England and journalists in the media cannot; one has to conclude that they are colluding to bankrupt the country deliberately.
After reading that I need a cup of tea to raise my spirits.
The facts are sobering but dare I suggest that the root causes be looked at.
All I can say as an 81 year old Englishman is that I was only briefly unemployed, always paid my taxes, cost the NHS very little and, as we were once allowed to say, generally "played the white man". I saw the way things were going in the UK and moved abroad.
Now I am made to feel guilty for drawing my state pension while total strangers from totally alien parts of the world are illegally entering the country of my birth, ably assisted by the agencies of government, and housed in hotels at the taxpayer's expense.
It's a funny old world. It just does not feel funny.
Glad you are back to make sense of the mad, mad economic world. Why are our politicians blind to reality - ideology or stupidity? I look forward to reading and watching (and seeking to understand) more.
It does make you wonder, I've listened to Liam a lot, and he explains things in a way us laypeople can understand and can see how serious the situation is. But the government seems blind to what is staring them in the face and they either don't listen to what experts say, or think arrogantly they know better.
It’s more fundamental Liam. They do not trust nor believe in a “nation of shopkeepers”. Tories and Labour think that business is big corporations with “employees”. Not self employed or contractors or entrepreneurs or anything else. So when you try and steer the economy to fuel organic growth and productivity of these risk takers, essentially, all Labour and the left see are “pirates”, “rich scammers” not people working hard.
And in having this twisted socialist belief they pull everyone down to the poverty level.
Given SME's contribute 45% to GDP it follows that corporations contribute 55%, conclusion, both are equally important. The difference is corporates spend more time schmoozing Government and talking the minestrone words of corporate management speak that means nothing and contributes nothing to productivity, while SME's get on with growth.
This government is either inept or deliberately trying to destroy us, financially and culturally.
Great analysis Liam, if only we had people like you in charge.
Build the SMRs that Rolls Royce build. And build them on ex power station and current power station sites.
That’s far too sensible.
Back when they closed a lot of the old reactors the locals in those areas were begging the state to build new reactors on the same sites because they gave a lot of high paid and secure jobs. Sadly the govt knew better and went for gas only because it was cheaper and cleaner. Then they decided burning gas was “bad”. If only we had someone in govt with enough of a brain to work out an energy mix is always the best option.
‘Starting to’?? They were ropey under the Tories, now with the Marxist trotters in the till, they are completely raided.
Discussion of tax rates should take into account student loan debt with interest payments pegged over the rate of inflation. Any moderately successful graduate is now saddled with what is effectively an additional income tax rate for the whole of their working lives. This will have a significant drag on economic growth growing forward. I have no doubt that this is an economic disaster in the making.
Any sane 18 year old would dodge University like the plague, it has become a joke the output is that poor.
Good point, and no doubt outstanding amounts on Covid bounce back loans are still exerting a further drag on the economy. It would be interesting to see stats on how much of these loans remains to be repaid
Very true. I presume the student loan book is another an off balance sheet liability for the Government. In 2052 when the plan 2 loans start to expire, the government will have to start writing off the debts that are not going to be repaid.
You are fair and explain things so well. It’s lovely to see you popping back to GB News. Would love you to return.
We are heading fast towards a sterling debt crisis just like 1976 but this time there will be no one to save us. The one silver lining is that pretty damn soon there will be no alternative but to look to Buenos Aires, create our our own post it notes of whole areas to abolish with a cry if ‘afuera’ !
Why is there so much economic illiteracy / idiocy in our politicians, civil service and media class? Some of them must have studied the basic principles of economics and seen what happened in the past?
As you say the fiscal crisis is much closer than it was a year ago. TBH if this is the only way to sort a lot of our structural issues out then this seems to be Labour’s inadvertent strategy… which will profoundly impact the people they talk about representing. Ironic indeed
Meanwhile the Labour government hides its head in the sand with its tired “it’s all because of 14 years of Tory failure”. They’re choosing to stare at the rear view mirror and ignore the imminent head on collision. Why are the media, not to mention the opposition, allowing them to get away with it?
Almost like it’s planned!
It is planned, a manged decline of the UK as a sovereign nation, economically, culturally and disastrously
No!
Matthew Laza isn’t correct in saying only a few companies in the world can build nuclear power stations.
America (and others) can build these, tried and tested, earthquake proof too (which we obviously don’t need in the UK), at 6-8 billion. The UK could have two for the old price of Sizewell C, and in less than 5 years!
Like many probably, I fondly imagined that national debt could be eroded over time by inflation, but I had no idea UK government(s) have been accepting so much index-linked credit! 30%?! What were they thinking? It's absolutely mental!
It does seem as though a financial meltdown is on its way and to be honest I think it’s what we need. Neither the politicians or the voters (at least most of them) are in a dreamworld and a crisis will bring home the mess we are in. The government in power when this happens will get the blame so I hope it happens before 2029.
With the revival of James Cleverly I do fear the Tories haven’t learnt anything yet. This leaves Reform as our hope but their recent spending promises scares me. Farage needs to speak to you Liam and they need a good economic advisor, again Liam would fit the bill.
Very depressing but we have to hold on and hope we get a government to turn the ship around.
As ever a concise and factual report on the true state of the UK economy which is seriously concerning.
As an ordinary chap with an interest in economics and a successful commercial career without the benefit of a degree, if I can grasp the facts and conclude that we need to make cuts to spending and our Chancellor, Treasury Officials, Governor of the Bank of England and journalists in the media cannot; one has to conclude that they are colluding to bankrupt the country deliberately.