It’s not just government debt that will concentrate people’s minds over the next few years or so. According to the Office for National Statistics as many as one in ten households were two or more months behind with debt repayments during the boom years 2006 to 2008. Since then of course the recession may well have made things a lot worse. On top of that is the prospect of a higher tax bill as we struggle to find money to pay back government debt.
The Gilt markets have also caught a cold with the realisation that there is no credible plan in the Pre-Budget Report (PBR) to pay back the increasing government debt. Without a plan the Credit Rating Agencies (Moodys, Standard and Poors et al) may well stop talking about stripping the UK of its AAA status and actually do it! That would send our debt repayments soaring in the future.
According to some, on average each family faces a massive Â£2,400 annual tax bill after the next General Election.
But while this has been developing little it seems has changed in Westminster. The MPs claims go on as they ensure their own pockets are well lined prior to probable forced eviction from their plush setting in a few months time. Many still claimed the maximum they could and for the records to show that claims for such things as bell towers, luxury baths and water-wheels are still being made beggars belief! This behaviour from the same people berating bankers for failing the economy and calling for bankers’ bonuses to be taxed heavily is despicable.
Well, in my opinion MPs have also obviously miserably failed the UK. So for starters I propose a huge tax, say 100%, on the increase in equity above a nominal 2% inflation on any property that an MP has made any claim from the public purse for.
This to be collected on the sale of the property and to enforce it a claim should be immediately lodged against the property at the Land Registry. That way the property cannot be sold without the taxpayer getting their money back. This should be rushed in with the same indecent haste with which the bankers’ bonuses were taxed.
We need to hit these people hard in their own personal pockets, because that is all that apparently matters to them.