BGN Entrepreneur

The burden of paying off UK’s burgeoning debt pile is falling on less than half the British workforce 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 more than 29 million workers. However, the number of people paying income tax will fall in the next few years, with umemployment 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.
Over two million people in the UK are currently unemployed, about 6.5% of the workforce. But the independent Centre for Economics and Business Researchthink-tank reckons that unemployment will peak at 3.5 million in the last quarter of next year.
Many economists are scared that the recovery will be very slow, and that comopanies will be very slow, and that companies will be nervous of taking on staff.
This month, the Institute for Fiscal Studies predicted that households across the contry may have to pay another 1250 pound a year each in tax to help the Treasury to pay off the national debt.

Related posts:

1. Burden of the Natioanl Debt Fall on Fewer
   The burden of paying off UK’s burgeoning debt pile is...
2. National Debt Hits a £799bn Record High
   Sterling headed south in the wake of further evidence that...
3. UK Debt Payments to Double by 2013
   The cash eaten up by interest payments on Government debt...
4. National Express Investor Lifts Stake
   National Express’s biggest shareholder stepped up its bid to block...
5. National Grid Looks to UK Retail Investors
   With the launch of an index-linked corporate bond aimed...