Public Sector Debt Nearly Three Times Larger Than Official Figures

Tue, 20 Oct 2009

The true level of Government debt is almost three times higher than the official figure, according to a new publication.

A book published by the Centre for Policy Studies claims that the size of the public sector’s net debt now stands at over £2.2 trillion, almost triple the £805 billion quoted by the Office for National Statistics and equal to £85,610 per UK household.

The book, titled The Hidden Bombshell, also reveals that debt levels have risen by £346 billion in the last year, or by a staggering £11,000 a second.

According to its author, Conservative MP Brooks Newmark, the Government’s official debt total of £805 billion does not include the full cost of Private Finance Initiative projects, which he calculates at £139 billion.

It also fails to take into account £1.1 trillion worth of unfunded public sector pension liabilities, guarantees to firms such as Network Rail totalling £22 billion and the £130 billion cost of bailing out the UK’s banking sector.

The revelations come as latest public finance figures are expected to show that total net borrowing soared by £10.4 billion last month, taking cumulative net borrowing for the year to £80 billion.

The CBI said the Government must cut its planned spending by some £120 billion over the next five years if it is to balance public finances .
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