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[albitz]

£13.16 billion in August. A new record.Road to recovery ?
To hell in a handcart more like.

[Marks DTM Calib]

Its a good job we are making cut backs or that could have been so much worse!

[albitz]

Need to make a lot more cutbacks by the look of it.

[cem_devecioglu]

it may be a record but..  £13 billion is 13 days  expenditure for UK..  from where I know, because I work in govt treasury .. 

you must start to think when the amounts exceed % 30 of annual budget..

[Martin_1962]

Slash benefits for never worked and long term unemployed - ie the not bothering lot (not the lost job help people)

[albitz]

13 billion in one month though Cem. A lot of money by anyones standards.Debt is at an unprecedented level already and yet we are borrowing more than ever before. Cant be good.
Call me old fashiolned, but to start repaying debt, you need to stop borrowing, then spend less then your income. Otherwise you can never start to repay the debt.
There is waste on a grand scale all over this country, but everyone seems to think that it should be someone else who is responsible for making cutbacks and savings.

[Kevin Wood]

You'd have thought that would have dawned on them by now given the fact that Labour tried the "get out of debt by spending more" option and, surprise, surprise, that didn't go well.

[Marks DTM Calib]

13 billion in one month though Cem. A lot of money by anyones standards.Debt is at an unprecedented level already and yet we are borrowing more than ever before. Cant be good.
Call me old fashiolned, but to start repaying debt, you need to stop borrowing, then spend less then your income. Otherwise you can never start to repay the debt.
There is waste on a grand scale all over this country, but everyone seems to think that it should be someone else who is responsible for making cutbacks and savings.

Trouble is Albs that it takes years to make the changes (as they should ahev been started years ago and argueably been more under control 10 years ago!)

The key thing is that we are doing something....unlike Greece and Spain, and the consequence is that the organisations that have loaned them money are not confident they will get it back so the credit rate drops, the interest rate goes up (because they are higher risk) and they spiral into effective insolvency.

The spend approach is an interesting scenario as well, yes it would potentialy kick start the economy (but only slightly) however, it would not be doing anything to address debt, in fact it would be making it worse.

This is the point your lenders go 'ow, your in debt and spending still'...bad credit rating arrives, cost of the debt goes up.....and the consequences are worse!

To me the spend approach only works if you have some debt but not a stupid amount, sadly we have a stupid amount! 

[albitz]

Agreed. Half of the EU is now insolvent,and its going to bite them (and to a certain extent us) very hard very soon imo.
If they were businesses they would have had the administrators in years ago.
Unfortunately the Limpdems dont understand any of this, as Prince Vince told conference yesterday that they would spend £5 billion on projects to create jobs and therefore growth. He doesnt understand that the reality is the other way round. Growth creates jobs.
I would imagine that Osborne will tell him to break orft, when he gets back to Westminster though.

[Kevin Wood]

To me the spend approach only works if you have some debt but not a stupid amount, sadly we have a stupid amount! 

Indeed. You have to be a little careful that you're spending on things that will promote growth as well, which was Liebore's main failing IMHO. They were spending on things that promote more spending.

[albitz]

You'd have thought that would have dawned on them by now given the fact that Labour tried the "get out of debt by spending more" option and, surprise, surprise, that didn't go well.

Speaking of which. That moron Prescott spent £500 million on his project for regional fire service control centres, against all advice. It was finally scrapped yesterday.

[Marks DTM Calib]

I personaly have no issues with spending controlled amounts on new capital assets which can help stimulate growth e.g. the channel tunnel raillink was one (which they then gave away  [smiley=thumbdown.gif]) or new tram systems etc.

Chucking billions in a pot for organisations to feed off for me is the wrong approach

[albitz]

I personaly have no issues with spending controlled amounts on new capital assets which can help stimulate growth e.g. the channel tunnel raillink was one (which they then gave away  [smiley=thumbdown.gif]) or new tram systems etc.

Chucking billions in a pot for organisations to feed off for me is the wrong approach

I agree. If it can be demonstrated that it will greatly assist growth then well and good. But in reality it doesnt usually happen like that. More often than not, it ends up as yet another gravy train for people with no understanding whatsoever of even the most basic principles of business.
The founding principle of such projects should be to help,assist and encourage private enterprise rather than yet another quasi govt project.
If we help create circumstances which help private companies to be competitive they will sell their goods which in turn will create genuine jobs. Seemples - or it should be.

[cem_devecioglu]

I personaly have no issues with spending controlled amounts on new capital assets which can help stimulate growth e.g. the channel tunnel raillink was one (which they then gave away  [smiley=thumbdown.gif]) or new tram systems etc.

Chucking billions in a pot for organisations to feed off for me is the wrong approach

yep.. investments that can bring extra income can help reduce the debit.. but with a condition.. dont privatize it..    in my country all govt fabriques, precious areas, harbors,telecom etc etc are privatized for a token.. and now what happened.. govt spend
the money for garbage, and now in order to pay debt they increasie fuel prices everyday.. so, what must be done is obvious, spend the hardly collected for serious things, cut luxury  and never ever privatise it.. or you will give all your income as a gift and later collect more tax

[cem_devecioglu]

and one more point private companies (like in any other countries) invest their money in highly profitable areas , be it asia, east europe or somewhere else.. so the theory that their investments will stay in the country and bring extra jobs and other chances will likely fail..


and also there are other examples.. where money is completely wasted.. the new rich decide to buy football teams, make big parties , big ships etc etc..