Episode #37
UK's Fiscal Problem: Worse Than the 1970s...
Britain's public finances are under growing strain, with debt close to twice the level seen during the 1976 fiscal crisis, a heavier interest burden, weaker productivity growth and mounting pressure from an ageing population. But how does today's position really compare with the crisis of the 1970s, and could Britain once again be forced to Podcast host Duncan Barkes is joined by TaxPayers' Alliance chief executive John O'Connell and former TPA chairman Mike Denham, who has authored new research comparing Britain's current fiscal position with the circumstances that led to the 1976 IMF bailout. They examine the growth of public debt, the rising cost of servicing it, Britain's increased exposure to international investors and refinancing risks, and why today's spending commitments may be harder to reduce than those of the 1970s. They also discuss what the lessons of 1976 mean for economic growth, taxation and the long-term sustainability of the public finances. Read the full paper here :
