Forget the £20 billion “black-hole” in the UK’s budget – the real number is over £130 billion and has averaged £120 billion for the last ten years. Trump has a plan for the US!
Almost all the UK’s fiscal deficit is interest on debt – for the US its about 2/3.
PETER HALLIGAN
From Brave Ai reporting on data from ten years ago:
“At the end of the financial year ending March 2015, the UK government gross debt was £1,601.3 billion (87.4% of GDP).”
Here’s the latest to 31 March 2025
“As of March 31, 2025, the UK national debt was estimated to be £2.79 trillion.”
Up by £1.2 trillion pounds in ten years – £120 billion a year.
The average interest rate payable?
“The average interest rate on UK public debt as of February 2025 was 4.52% per annum.”
Meaning the cost of servicing the debt is £2.8 trillion times 4.52%.
Annual cost = £126.56 billion a year – before a penny is spent on “net zero” measures or education or defence.
How much does the UK government spend every year?
“For the financial year 2024-25, the total managed expenditure is projected to be £1,276 billion.”
And what are the official deficit numbers for the fiscal year ended 31 March 2025?
“The UK’s fiscal deficit for the financial year ending March 31, 2025, was £151.9 billion, which is £20.7 billion more than the same period in the previous year. This deficit represents 5.3% of the UK’s gross domestic product (GDP), marking the eighth highest value since the financial crisis in the financial year ending 2009.”
£152 billion in a single year, lifting government debt to £2.8 billion.
The interest on government debt is close to the annual deficit. Britain must borrow to repay interest.
UK government debt will blow through £3 trillion in a year or so, costing £135 trillion – assuming that gilt yields and Bank of England base rates do not increase.
The Marxist Labour government is seeking to solve the problem by raising taxes (National Insurance) by £40 billion).
This tax increase will not raise £40 billion – they will be lucky to raise half that. Employers will cut staff, throwing people onto welfare.
Nor will the extra National Insurance cover the costs of “net zero” or the costs of legal and illegal immigration or the rising health care costs of the adverse evets of the experimental C19 injections.
Just what the rating’s agencies are going to do, has become an issue.
From here:
United Kingdom – Credit Rating
With every passing day, the UK Labour party pursues policies that reduce domestic output and replace it with imports that raise costs.
That is no way to run a country.
I would argue that the UK government needs to run a fiscal surplus of around £50 billion a year by reducing government spending by 25% – 200-300 billion pounds – starting with “net zero” measures, eliminating DEI and the promotion of child porn in schools, slashing salaries in senior positions in local authorities and shrinking the civil service.
Out of interest, the US national debt is about to pass $37 trillion with an average interest rate of 3.3% – for an annual interest bill of $1.22 trillion bucks.
From here:
IMF sees U.S. fiscal deficit dipping in 2025, citing tariff revenue
“The Fiscal Monitor report from the 191-nation group released Wednesday projects the overall U.S. federal deficit will fall to 6.5% of gross domestic product this year, down from 7.3% in 2024.”
From here:
The Budget and Economic Outlook: 2025 to 2035 | Congressional Budget Office
The fiscal deficit is projected at $1.9 trillion for 2025.
$1.2 trillion out of that $1.9 trillion is interest.
US fiscal year runs to 30 September 2025 – 5 months away.
Congress has just returned from its two-week Easter break and begins to work on Trump’s “big, beautiful bill”.
Even with DOGE’s 160 billion bucks in savings, US national debt will burst through 40 trillion by 2027/8 – unless Trump’s policies on attracting investment can serve to increase the labour force participation rate to over 72% from its current 62% – and put 17-20 million American taxpayers to work!
Remember that, so far, Congress has only voted to ICREASE spending on extending Trump’s 2017 tax cuts, increase military spending plus the coastguard and fund the completion of the border wall.
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Onwards!!!
This article (Forget the £20 billion “black-hole” in the UK’s budget – the real number is over £130 billion and has averaged £120 billion for the last ten years.) was created and published by Peter Halligan and is republished here under “Fair Use”
Featured image: 10haber.net
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