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Joined 7 months ago
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Cake day: March 2nd, 2024

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  • the thing is, it’s a gap between the money the government is spending and the amount of money it gets through taxes and other incomes each year.

    So it’s money that has to be borrowed from folks, every year to keep things going as they are. And each time that money is borrowed it needs interest paid on it which makes the problem worse. Especially with the high interest rates around the world.

    So british people are working hard, paying their taxes and a percentage of those taxes is going towards servicing debt that has been built up, by poor spending decisions in the past.

    It’s like payday loans for governments. you’ve either got to get spending under control, make more money somehow (tricks in the car park or maybe sell crack) or eventually reach the end of the road.











  • I agree.

    But the realist in me knows it is unlikely to be allowed to happen.

    I know that the government will have to service a £15bn debt through borrowing, which will raise interest rates, mortgages, rents and require cuts to public services to pay for. That is on top of the investment needed over the next few years to stop sewage leaking into rivers and leaks of millions of litres a day.

    In addition I know that pension funds and large investors will lose substantial sums of money and will look to divest from similar risks, which could lead to more utility companies becoming insolvent. A snowball effect.

    Finally, I know that international investment in the UK will be seen as more risky.

    What the government will be doing now is weighing up those risks against the cost of raising bills by the 59% that the water companies and industry bodies are asking for. If the worst should happen, will taxpayers be better off with a couple of hundred extra £ on their water bills to pay, or potentially a lot worse off with a rapid nationalisation of multiple firms.