BGN Entrepreneur

The burden of paying off UK’s burgeoning debt pile is falling on less than half the workforce in the UK and will have to be paid by fewer and fewer as unemployment continues to rise and the number of pensioners surges.
Only 48% of the population have a job, accounting for just over 29 million workers. However, the number of people paying income tax will fall in the next few years, with unemployment expected to increase even after the recession is over. Pensioner numbers will continue to rise, adding further pressure to finances.
At the moment, the Government is on course to run up a 180 billion pound budget deficit by next year, which represents about 12.6% of the value of the entire economy. The Ernst & Young Item Club reckons that the increase in borrowing will continue into the next decade and that it will be about 270 billion pound more over the next five years than the Treasury’s current estimates. The national debt is currently at about 630 billion pound, or 43% of gross domestic product.
Just over two million people in the UK are currently unemployed, about 6.5% of the workforce. But the independent Centre of Economics and Business Researchthink-tank reckons that unemployment will peak at 3.5 million in the last quarter of next year.
Most worringly, many economists are worried that the recovery will process very slowly, and that companies will be nervous of taking on staff.

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