UK Debt - Where did all the money go?

Soldato
Joined
7 Jan 2007
Posts
10,607
Location
Sussex, UK
So been wondering, I read that UK debt is around 1trillion-1.4trillion depending on the source.

What I can't understand is why previous governments have borrowed so much?

What was it spent on?

We don't have flying cars or a super transport system, infact our country looks pretty run down... Where was all the money spent?


Who was the idiot who lent us all this money we clearly couldn't pay back?


In 1976 didn't the UK go bankrupt with an interest rate a lot less than we have now?

Wouldn't it be better to declare bankruptcy, wipe the debt out, I understand this would put us in a bad place with regard to future borrowing and confidence but if we ain't got the money we shouldn't spend it...

Lastly I never racked up this debt so why should I care, it's not my debt?
 
If we went bankrupt we'd loose our AAA credit rating. Which wouldn't be good news at all.

Where the money went? I have no idea, its probably just 'small' borrowing every year to cover against budget miscalculation/fulfil promises without understanding the powerful force of

COMPOUND INTEREST
 
Ooook, I'm in a good mood today..here we go:

So been wondering, I read that UK debt is around 1trillion-1.4trillion depending on the source.

There is no "depending on the source". Check your sources for consistency and factuality. As of March 2010 UK debt it is 1trillion. Check here http://www.statistics.gov.uk/cci/nugget.asp?id=277

What I can't understand is why previous governments have borrowed so much?

All governments will occasionally borrow to fund big public projects or public sector costs (healthcare, welfare, transport infrastructure etc).

What was it spent on?

Details can be found in the Treasury's website http://www.hm-treasury.gov.uk/

We don't have flying cars or a super transport system, infact our country looks pretty run down... Where was all the money spent?

The UK transport system is far superior to many other countries'. Yes, it has suffered considerably from underinvestment but it is hugely expensive to maintain due to its size and complexity. Flying cars would be something provided by the private sector as far as I am aware, not the public sector (yes I got your point..).

Again check out the budget reports of previous years on the Treasury website.

Who was the idiot who lent us all this money we clearly couldn't pay back?

Banks, sovereign funds, pension funds, mutual funds, hedge funds, all sorts of financial institutions will buy government gilts (bonds) as they are considered very secure investments with minimum risk.

The UK has no problem paying back its debt nor will it have in the near future with the current state of the economy. Clearly anyone who lent it money is not worrying about whether they will get it back because they simply will. There is a whole system of rating and ranking of institutions/governments credibility on these things that investors advise before they lend money. Government bonds of a AAA nation is probably the safest investment ever.

In 1976 didn't the UK go bankrupt with an interest rate a lot less than we have now?

I am not sure what your point is with this one? What does interest rate have to do with anything?

Wouldn't it be better to declare bankruptcy, wipe the debt out, I understand this would put us in a bad place with regard to future borrowing and confidence but if we ain't got the money we shouldn't spend it...

You can't simply declare bankruptcy as a nation, it's much more complex. In that eventuality you have to prove you can't pay them back - which UK clearly can't do as it CAN pay back its debt. In that case anyhow creditors would start "stripping you of assets" to get any of their money's worth back.

That aside, no one would ever lend you money again and your trade would suffer immensely. It's just not an option that you want to choose unless you are the very edge of the cliff, and UK is nowhere near there.

Lastly I never racked up this debt so why should I care, it's not my debt?

You don't have to care, you just have to pay for it ;)
 
Why would we need an AAA credit rating, looks to me that we are a crumbling island, so why do we need to borrow?

Why can't we run the country, budgeting for a small "profit" instead of trying to budget to spend everything, then get it totally wrong then have to borrow more. Why do we budget to live beyond our means?
 
Why would we need an AAA credit rating, looks to me that we are a crumbling island, so why do we need to borrow?

Are these genuine questions?

I recommend reading some economics related articles on wikipedia to get you started.
 
Problem is the Government borrowed on one of those short term "have the loan in your account within 10 minutes and pay back on pay day"

They didn't realise the APR was 2986%.:p
 
Most of the borrowing is internal isn't it? From banks and investors? Say what you like about Brown, he borrowed like there would be no tomorrow and bought massive shares in the banking industry for a pittance, which in the years to come will pay back huge amounts to the country.
 
Most of the borrowing is internal isn't it? From banks and investors? Say what you like about Brown, he borrowed like there would be no tomorrow and bought massive shares in the banking industry for a pittance, which in the years to come will pay back huge amounts to the country.

So he borrowed from UK banks, which went bust, his government bought them when they were on their knee's. Now our money has stabilised them we get a dividend from them which we can use to pay pack the money we owe our now state owned banks?
 
the NHS and the benefits system have accounted for a fair percentage.

Before Labour, there used to be just about every night horror stories about the NHS, which was a right shambles (yes, compared to now).

There will be plenty on this board who remember the '14 month+ waiting lists'. Hang around for 14 MONTHS ok I know you're in constant pain. Yes with a broken hip. That has to be rebroken when you finally get to surgery because it's healed wrong? 14 months mate now bugger off home after you've bought yourself a wheelchair. And yes, younger readers, it was like that. A first world country. You fall off your bike and end up with a spoke through your leg. 'Have some pain killers, we'll pull the thing out with dirty pliars, then sort out the mess in 16 months ok fella until then enjoy your life and don't mind the pain eh :/'?



benefits will always be controversial, but what can't be argued is rightly or wrongly the standard of life for the very, very poorest was dragged up from the gutter. Which cost shedloads! It's just a pity the very very poorest also include a lot of less savoury characters.



Finally declaring bankrupcy would be a disaster as we couldn't get funding again. Remember if we borrow money in at 5% because of our AAA+ credit rating, then lend it out to a 'B' credit rating at 10% - that's money for free coming into England although less savvy people may scream 'OMG look how much we're in debt' ..
 
Last edited:
Sending millions to other countries wont help. Charity begins at home unless you live in the UK.
 
So been wondering, I read that UK debt is around 1trillion-1.4trillion depending on the source.

What I can't understand is why previous governments have borrowed so much?

What was it spent on?

We don't have flying cars or a super transport system, infact our country looks pretty run down... Where was all the money spent?

Bank bailout, Schools, Hospitals, Armed Forces. The money was invested in many different projects.

Who was the idiot who lent us all this money we clearly couldn't pay back?

Who says we can't pay it back? :confused:

In 1976 didn't the UK go bankrupt with an interest rate a lot less than we have now?

Wouldn't it be better to declare bankruptcy, wipe the debt out, I understand this would put us in a bad place with regard to future borrowing and confidence but if we ain't got the money we shouldn't spend it...

Lastly I never racked up this debt so why should I care, it's not my debt?

Doesn't work like that for countries, if a country defaults on its payments then usually the IMF will get involved and lend us more money and in return demand severe spending cuts to pay them back. This is what happened to Greece. If we were to do as you suggest then the government would run out of cash pretty quick (as they can't borrow) and in essence would stop functioning as a government.
 
The UK shouldn't have borrowed money in the first place. Trillions of pounds, my god. The UK is no more.

I find it discusting that people can get more money than a worker and play the system. It's wrong, Humans are going to on a wipe out mission are we? Greed is all I can say, pure greed. All businesses is there for is to rip every single one of us off and to put more money into the governments pockets.

All you people borrowing money, I bet theres a lot of it on these forums!

Don't get credit just to buy PCs, theres more to life than this.
 
Back
Top Bottom