Britain's Debt
Over the past few years, our economy has become bloated; due to Brits bingeing on debt and not done anything to work off the excess, claims Reform.
According to the independent think tank, this tendency to rely on cheap credit cards and cheap loans to support spending habits has produced an economy that is unfit and working inefficiently. A new report from the group notes that it is not just consumer borrowing that has caused the countrys coffers to become corpulent with debt, as the public structural budget deficit has become the fourth highest of all countries in the Organisation for Economic Cooperation and Development. Meanwhile, Britains trade deficit is continuing to burgeon, while public spending programmes are based on out-of-date and over-optimistic forecasts for gross domestic product (GDP) growth, the group warned.
It's also been warned that over the coming years, around 4000 will have to be paid by the average taxpaying family, in an attempt to rebalance the national debt, that's equivalent to 100 billion pounds in tax contributions each year.
Ahead of the pre-Budget report, which will be announced by Alistair Darling on Monday November 24th, Reform has warned that simply injecting more public money into the banking industry will have little lasting effect on the state of the countrys economy. So too, it warned, cutting public expenditure on vital long-term development programmes is equally ill-advised, as it claimed that as recent history has shown, cuts in spending will inevitably lead to increased investment a few years down the line.
The group insisted that there is only one course of action that will relieve the strain of the national debt: "In order to move beyond the obese economy, Britain has to consume less and work more. Households need a sense of direction towards a higher saving, lower tax economy. The short-term objective is the same as the long-term path to economic growth - to increase productivity. This should be the theme of the Pre-Budget Report and of Budget 2009."
In addition, the group called on the chancellor to focus on the main key objectives: private sector productivity, public sector reform and personal productivity.
Finally noted by the group is that, as people are vital to the economic recovery there must be support from the government; to help them stop relying on loans and credit cards for example, but have them start spending their own money.
The independent financial advice site Motley Fool, warned that millions of Britons are unprepared for a recession. For those affected by the recent economic storm, taking a debt consolidation loan could prove to be an effective way to sort out those finances. Motley Fool stated that the number of people in need of a debt consolidation loan may increase over the coming months.
According to the independent think tank, this tendency to rely on cheap credit cards and cheap loans to support spending habits has produced an economy that is unfit and working inefficiently. A new report from the group notes that it is not just consumer borrowing that has caused the countrys coffers to become corpulent with debt, as the public structural budget deficit has become the fourth highest of all countries in the Organisation for Economic Cooperation and Development. Meanwhile, Britains trade deficit is continuing to burgeon, while public spending programmes are based on out-of-date and over-optimistic forecasts for gross domestic product (GDP) growth, the group warned.
It's also been warned that over the coming years, around 4000 will have to be paid by the average taxpaying family, in an attempt to rebalance the national debt, that's equivalent to 100 billion pounds in tax contributions each year.
Ahead of the pre-Budget report, which will be announced by Alistair Darling on Monday November 24th, Reform has warned that simply injecting more public money into the banking industry will have little lasting effect on the state of the countrys economy. So too, it warned, cutting public expenditure on vital long-term development programmes is equally ill-advised, as it claimed that as recent history has shown, cuts in spending will inevitably lead to increased investment a few years down the line.
The group insisted that there is only one course of action that will relieve the strain of the national debt: "In order to move beyond the obese economy, Britain has to consume less and work more. Households need a sense of direction towards a higher saving, lower tax economy. The short-term objective is the same as the long-term path to economic growth - to increase productivity. This should be the theme of the Pre-Budget Report and of Budget 2009."
In addition, the group called on the chancellor to focus on the main key objectives: private sector productivity, public sector reform and personal productivity.
Finally noted by the group is that, as people are vital to the economic recovery there must be support from the government; to help them stop relying on loans and credit cards for example, but have them start spending their own money.
The independent financial advice site Motley Fool, warned that millions of Britons are unprepared for a recession. For those affected by the recent economic storm, taking a debt consolidation loan could prove to be an effective way to sort out those finances. Motley Fool stated that the number of people in need of a debt consolidation loan may increase over the coming months.
About the Author:
Abbi Rouse writes for All About Loans. Our visitors can apply online for car loans. We also specialise in cheap personal loans, and debt consolidation loans.
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