What Will They Inherit?

Our children - how will the budget  deficit affect them?

No, it’s not Boujis, it’s Woodland Hills High School Prom no. 1, 2012. Photographer: Mark Neville.

A colossal debt is what our grandchildren stand to inherit. Let’s be clear about this, because politicians are not always clear, perhaps because they don’t understand it, although that’s unlikely.

  • The National Debt is the total amount of money that Britain has borrowed and not yet repaid.
  • The Budget Deficit is our yearly overspend, when there isn’t enough tax income to pay for Britain’s expenditure.We borrow the necessary amount of money, and it is added to the National Debt, which has been increased yearly, both by the Labour and Conservative/Liberal governments.
  • There’s a Budget Deficit because every year, there’s not enough money to pay handouts to all the people that want them – and they include all of us, from pram-pushers to pensioners. Because we all want our piece of the pie, the Chancellor borrows money to pay for it all.
  • Interest must be paid promptly on the National Debt, because otherwise nobody would continue to lend money to Britain.
  • The total National Debt is now over £1,430 Billion pounds: that is, over a million pounds, multiplied by a thousand, with that amount multiplied again by another thousand … I hope that’s absolutely clear.

In the last tax year Britain’s National Debt increased by £43 Billion. Britain is spending more on National Debt interest than on Defence and almost the same as on Education. And we are not repaying that borrowed money.

This week, the Treasury sends a letter to every one of Britain’s 24 million taxpayers; it contains a gaily-coloured pie chart, so we can see how our tax is spent. I cannot see that any money is being paid to reduce the National Debt.

Tax pie chart

HMRC tax summary

What can be done about it? Ask your would-be candidates before next year’s General Election.

Why not reduce the National Debt by 3% a year? Then, after 33 years it will have been repaid, so our grandchildren will not inherit this terrible burden. Less than 3% a year will not repay that debt fast enough.

Where can the spending cuts be made? Perhaps on Overseas Aid and Defence – who’s going to invade us? And perhaps Business and Industry might stand on their own feet, unsupported by my tax and your tax?

If we steadily paid off the National Debt in that way, it would reduce the relevant amount of interest payable, and so, gradually, that big slice of the pie would also get smaller and smaller.

But politicians publicly ignore this debt. They know that, to get our votes, they had better pay us our piece of the pie.

But not paying off our National Debt is as morally dishonest as not paying our personal debt. It is even more immoral when we know – conveniently pushed to the back of our mind – that we are leaving this huge burden to our children and – if we don’t do something about it – also to our chubby-cheeked grandchildren.

Clearly, this is morally wrong. So perhaps that 3% repayment should be included in next year’s budget plans and the gaily-coloured pie chart.

Main photo: Pulitzer Prize nominee photographer Mark Neville, famous for his socially focused projects, is about to hold two exhibitions in London. Admission free.

London/Pittsburgh is at the Alan Cristea Gallery from 21st November 2014 – 24th January 2015. Details at www.alancristea.com. Art as Social Document is at the London School of Economics, 2nd – 19th December 2014. Details on the LSE website.

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