Government accused of trying to hide £1.3 TRILLION debt bomb.
Every person in the UK would need to pay almost £54,000 in order to plug the gaping hole in Government schemes – especially public sector pensions, a think tank has claimed.
The Adam Smith Institute report adds that “vigorous” spending cuts are needed if we are to avoid bankrupting future generations.
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How the debt adds up
According to the Think Tank, we’re facing national liabilities of £1.85 trillion, which outstrip the national debt by £250 billion but are “concealed by Government”.
Two-thirds of these national liabilities made up of unsustainable public sector pensions.
It adds that 93% of public sector pensions are currently unfunded, with the Government having no money put aside to pay £1.3 trillion of inevitable debt
Furthermore, it claims that almost half (45%) of student loans will be written off.
This means the real cost of debt to every man, woman and child in the UK £53,822 each.
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‘Mortgaging our children’s future’
Dr Eamonn Butler, director of the Adam Smith Institute, claims the Government’s action on pensions is both “wildly reckless” and “deeply immoral”.
He adds: “Homeowners worry about their mortgages and cut back when they are overstretched, but Governments don’t.
“Instead they keep taking on new liabilities, with schemes that buy votes today but mortgage the future of our children and grandchildren.”
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‘Time to cut costs’
The author of today’s report, Nigel Hawkins believes that successive Governments have failed to tackle the growing public sector pension liabilities, mainly for political reasons.
“Indeed, had leading companies, such as British Telecom, acted similarly in letting their already massive liabilities accumulate further, they would have been pilloried.
“As a matter of real urgency the Government must vigorously cut these excessive public sector liabilities or condemn future generations to staggering financial turmoil.”
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How to boost your retirement:
Shocking state of British pensions revealed