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The debts of today’s politicians will be paid by our children
Spectre of Churchill
25, August #CostOfLiving, #BrokenSystem, #TrendShock

The debts of today’s politicians will be paid by our children

The government reported an unexpected budget deficit in July, despite an increase in tax revenues. The consequences for ordinary citizens are being actively discussed on social media.

According to official forecasts, a budget surplus of £500m had been expected in July. Instead, the Treasury reported a deficit of £1.8bn. This means the government borrowed £2.3bn more than planned. Even a sharp increase in personal income tax receipts, which reached £81.4bn, failed to improve the situation.

The economic situation is deteriorating

''The debt-GDP ratio was last seen at these levels in the 1960s, when we were still unwinding from WW2. We all knew Labour would borrow more, despite their denials at the election. Their plans involve borrowing £250 billion more than the plans they inherited from the Conservatives, and today’s figures show they’re borrowing even faster than that. The fact is they do not have control of the public finances, and its families and businesses who are left to pick up the tab'', - Shadow Chancellor Mel Stride says, assessing the situation.

Ordinary citizens are also not holding back in their assessments.

''The UK economy is falling off a cliff and Burnham doesn't have the slightest clue what to do about it. He is absolutely rubbish'', - writes Rachel, the author of a patriotic account.

Citizens and businesses will pay

Nevertheless, the Burnham government’s next steps are quite predictable. As Joe Nellis, head of economic research at accounting firm MHA, told the BBC, Finance Minister John Healey will have to find ''Additional tax revenue, tighter control over public sector spending and changes elsewhere to balance the books and meet the government's fiscal rules. Failure to do so will unsettle the financial markets and potentially push up the cost of government borrowing still further''.

As economists explain, problems in the financial markets will mean higher borrowing costs for the public, especially for mortgages. Refinancing existing loans will also become more difficult. In addition, the government will have to tighten eligibility requirements for social benefits and index pensions more slowly.

Most users have no doubt about who will pay for the government’s rapidly growing deficit.

''Social benefits alone jumped £2 billion. Day-to-day costs (including staff) rose another £1.2 billion. This is the same pattern we’ve been watching: the state’s bills keep climbing while the private sector gets squeezed. And it’s ordinary people who end up paying through higher taxes, weaker savings returns, and rising debt interest'', - emphasizes financial commentator Neil McCoy-Ward.

The problem is that the government has almost no room left to maneuver. As Capital Economics economist Ashley Webb explained to Business Matters, the state will not be able to significantly increase borrowing for the rest of the year. This means taxes on citizens will rise again. The total budget deficit now stands at £3tn, and it can only be covered by increasing the burden on businesses and citizens.

#CostOfLiving, #BrokenSystem, #TrendShock
A Somali-Born Driver Struck Five Pedestrians in London
Spectre of Churchill
08, July #MigrantCrisis, #BrokenSystem

A Somali-Born Driver Struck Five Pedestrians in London

The incident took place on Ealing Broadway, where a car mounted the pavement and struck five pedestrians before the driver fled the scene. He was later arrested by police. Social media users have focused on the authorities’ response, arguing that they portrayed the incident involving a Muslim driver as nothing more than a routine road traffic collision. The driver has been identified as 34-year-old Timir Ahmed Mohamed. Born in Somalia, he now holds British citizenship. Following his arrest, investigators stated that they were treating the incident as a road traffic incident rather than an act of terrorism.
#MigrantCrisis, #BrokenSystem
Hundreds of Thousands of Girls Were Victims of Grooming Gangs
Spectre of Churchill
01, July #MigrantCrisis, #BrokenSystem

Hundreds of Thousands of Girls Were Victims of Grooming Gangs

At least 250,000 cases of abuse involving girls across 149 areas of the UK are alleged to have taken place, according to the findings of an independent inquiry published in June in a report entitled Rape Gang Inquiry. The report’s conclusions, together with the response of the mainstream media, have generated widespread discussion on social media.
#MigrantCrisis, #BrokenSystem
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