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Originally Posted by Damien
Well you can also attempt to stimulate the economy in the hope the debt ratio to GDP lowers and the debt becomes less daunting and even inflates away. Maybe a package of infrastructure spending and investment will be a part of the Tory platform this time. Austerity has ostensibly being happening for 7 years and seems to have had more success in causing resentment and unrest than achieving the self-imposed goals the Tories had. I think they'll be storing up problems if they come unto a decade of it with no end in sight.
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Interesting post. Hasn't there been a shift in spending towards more capital expenditure eg Crossrail and away from funding of councils? This looks set to continue with HS2.
Interestingly, councils have been borrowing from the low-interest Public Works Loans Board to fund over £1bn of property investment. They then rent the property out for profit to subsidise their day-to-day activities. How long this business model can last I'm not sure.
https://www.theguardian.com/society/...-credit-bubble
http://www.publiclawtoday.co.uk/loca...rchases-report