Office for Budget Responsibility - Cheery bunch.

[Fittster]

"Britain faces permanent tax rises or spending cuts worth almost £60 billion as the costs of an ageing population make the public finances unsustainable, an official forecast has said.

The Office for Budget Responsibility (OBR), the Treasury’s independent forecaster, warned that demographic and social change will force the state to spend much more on health and social care, even as tax revenues fall.

The scale of the “fiscal gap” is equal to almost 13p on the basic rate of income tax, or 13 percentage points added to VAT."

Also I thought Tonks and the cheerleaders said bailing out the banks would many vast profits for the taxpayers so we could all live like footballers:

"The taxpayer is facing a £13.5 billion loss on its holdings in state-backed banks, the OBR has warned.

The Government invested £42.4 billion in the Royal Bank of Scotland (LSE: RBS.L - news) , £17.3  billion in Lloyds Banking Group (LSE: LLOY.L - news) and £1.4 billion in Northern Rock.

“If sold at current market prices [they] would generate a loss of £13.5  billion for the taxpayer,” the OBR said. The Treasury is proposing to sell Northern Rock for £1 billion, which would crystallise a £400 million loss.

The value of the investments has declined since the OBR’s last analysis in March, when it said market prices implied a £1.6 billion loss."

Does this mean I should cancel the Ranger Rover sport?

At least there's a nice, Daily Mail approved solution to all the problems:

"Immigrant boost: They help to raise revenue, the budget newcomers add to GDP

Increased immigration would help reduce the tax rises and spending cuts that will be required to deal with an ageing population, the OBR has said.

“Higher migration would tend to increase GDP and not add much to age-related spending pressures. Higher migration therefore reduces the pressure on the public finances over our 50-year horizon,” the report said. But it warned: “When the migrants retire from the workforce they will push up spending more than they increase revenues.”"

http://uk.finance.yahoo.com/news/OBR-13p-income-ta...

[MOTORVATOR]

anonymous said:

[redacted]

This is true but then would you really select HMG to manage your investment portfolio?

[Fittster]

anonymous said:

[redacted]

Because they might be worth at lot less tomorrow, why shouldn't the taxpayer cut and run.

Just how long can the taxpayer be expected to hold a duff investment?

[CoopR]

NR needs to be sold, it's a business that needs some real leadership to get it back on track. Being state owned there is no chance of that. Take the 400m loss now rather than a bigger one later.

[JagLover]

Fittster said:

"The taxpayer is facing a £13.5 billion loss on its holdings in state-backed banks, the OBR has warned.

Whether it be a £13.5 billion loss, or break even if the banks recover, the point is that it is peanuts compared to the size of the deficit. Despite all the deluded lefties saying our fiscal problems are down to the banks.

[tomw2000]

Fittster said:

anonymous said:

[redacted]

Because they might be worth at lot less tomorrow, why shouldn't the taxpayer cut and run.

Just how long can the taxpayer be expected to hold a duff investment?

We seem to be expected to fund in perpetuity duff people. :|

[Fittster]

JagLover said:

Fittster said:

"The taxpayer is facing a £13.5 billion loss on its holdings in state-backed banks, the OBR has warned.

Whether it be a £13.5 billion loss, or break even if the banks recover, the point is that it is peanuts compared to the size of the deficit. Despite all the deluded lefties saying our fiscal problems are down to the banks.

No that's due to not paying enough tax or having enough immigrants, according to the OBR.