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George Osborne: No Quick Fix To Debt Problem

George Osborne

Posted: 28/11/11 14:51 GMT   PA

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George Osborne has insisted there is no "quick fix" to Britain's debt problems as he promised to invest for the long-term.

On the eve of his keenly-anticipated Autumn Statement on the economy, the Chancellor said the Government would stick to its deficit reduction strategy and dismissed the idea that it could "borrow a bit more to get us out of debt".

Challenged about the OECD think tank's prediction that the UK is set to slip back into recession, he stressed that the Office of Budget Responsibility (OBR) would be issuing its own forecasts on Tuesday, but acknowledged that the wider economic climate was "a challenge for Britain".

"I think the public understand that Britain has huge debts that it has built up. These debts need to be dealt with. The public also understand that the eurozone (debt crisis) makes that more difficult," Mr Osborne said.

"But what they want the Government to do is stick to the plan that will take us safely through the storm and invest for the long-term future. They have had enough of politicians who think there is a quick-fix solution, who say 'you can borrow a bit more to get us out of debt'.

"They know, the public, that this is not the answer for Britain and as a result actually I think the public is behind what the Government is doing."

The Chancellor will set out plans on Tuesday for an ambitious £30 billion investment programme in Britain's infrastructure as he tries to breathe new life into the stalled economy.

The decade-long programme is intended to lever in £20 billion of private investment from pension funds to finance the development of roads, railways and the high-speed broadband network.

The Government has now signed a memorandum of understanding with pension funds on the creation of the new "investment platform" - to be owned by the funds - to channel the money into infrastructure projects.

Mr Osborne will unveil his plans against the backdrop of a worsening economic outlook, with the OBR expected to downgrade its official growth forecast for this year for a second time to around 1%.

FOLLOW HUFFPOST UK POLITICS

George Osborne has insisted there is no "quick fix" to Britain's debt problems as he promised to invest for the long-term. On the eve of his keenly-anticipated Autumn Statement on the economy, t...
George Osborne has insisted there is no "quick fix" to Britain's debt problems as he promised to invest for the long-term. On the eve of his keenly-anticipated Autumn Statement on the economy, t...
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katertaif
My wife thinks I have one fault. Everything I do!
525 Fans
06:58 AM on 11/29/2011
Suddenly,Mr. Osborne thinks the public knows what it is all about, and suddenly he thinks we understand the necessities of his strategy (assuming there is a strategy) Since when was Mr. Osborne interested in what the public think, understand, or want? Was he interested a couple of weeks ago, when a public request for a debate on our continued membership of the EU was ruthlessly squashed? How did he vote then? Was it the way his conscience told himto, or was it what his constituents wanted him to vote (does he in fact know what his contstituents want)? or did he vote the way the whips told him to regardless of any rights or wrongs, or public wants?
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horseguards
197 Fans
11:08 AM on 12/04/2011
Katertaif,

And his (with Labour support) defeat of a call for referendum on EU membership: "the Government has to do what is in the national interest."

Examples of his fscal "responsibilities" (from The Telegraph):

"NHS mangers are in line for pension payouts worth more than £3 million, giving them six-figure incomes for life."

"Ministers could be left with an £8.5 billion “black hole” if they press ahead with the London to Birmingham link."

"Climate change drive costs taxpayers £650m."

"Extra £500m for rail tunnel to protect Chilterns
Ministers have found extra cash for new tunnel to pacify MPs who have been protesting against the high speed rail link."
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katertaif
My wife thinks I have one fault. Everything I do!
525 Fans
09:53 AM on 12/05/2011
Who says what was done was in th eNational Interest? Many people did not perceive it so, which is why so many signed the petition. There is no point in having such petitions if th egovernment will only debate honestly with those it deems fit. A referendum would decide what the people actually want. That is called democracy, and I would be prepared to abide by the decision and will of the people. Our politicians of all shades are obviously not so prepared, and that is not democracy.
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prescowar
10 Fans
11:23 PM on 11/28/2011
Britain has huge debts to pay off ? Not by the bleeding politicians that created them in the first place though.......bailing out the banks , EU contributions , Hadron collider , etc, etc,
Put a sock in it Osbourne , you don't give a toss about ordinary people... just like the rest of the parasites laughingly referred to as politicians.
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Upharto
60 Fans
10:05 PM on 11/28/2011
By the look on Mr Osborne's face he looks realy pissed off,he's not as pissed off as we are.
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eyedinnot
9 Fans
09:47 PM on 11/28/2011
But George is ok ,we are paying for his AGA to be serviced, and for his buildings and contents insurance. Oh and how much was it he had to pay back that he'd fiddled??
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r4tm4ster
0 Fans
07:08 PM on 11/28/2011
There is a quick fix, trouble is the politicians are too afraid to ask the hard questions, or do the hard thing: remove from the private bank (bank of england) the right,privelege,and ability to print and control the supply of debt notes. The problem exists because the banks have been allowed to deliberately create debt as a means of control and have failed to fully disclose how Money. rather than currency notes is created, which would inevitably expose the fraud that is becoming too apparent.
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Tony Barker
5 Fans
07:33 PM on 11/28/2011
r4tm4ster, you are talking about money from nothing. The deficit could be paid off in 12 months and the "debt" retired. Then, make the banks back loans from real asset, start with a ratio of 8.25% of asset in the first month and increase it by 8.25% per month until all money has to be backed by real asset before any loan can be lent. This would then save the taxpayer £60bn per year, allowing tax to come down and any annual tax revenue surpluses to be returned to the tax payer within 30 days of the end of financial year. This would make money the slave and not the people!
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r4tm4ster
0 Fans
07:43 PM on 11/28/2011
YES,yes,yes,yes!!!!!!! All we need now is a chancellor with the balls to do it!
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horseguards
197 Fans
11:24 AM on 12/04/2011
How could the deficit be paid off in 12 months?

How could it be "retired"?

Of what would these "real assets" consist?
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Tony Barker
5 Fans
07:41 PM on 11/28/2011
r4tm4ster. further to your comment, the deficit should be paid off in 12 months. Banks create money from nothing. They create debt. They should be made to back their loans by 8.25% in the frist month increasing the ratio of lending to asset by 8.25% every month until they reach 100% so they can't lend money without 100% asset to back the loan. This would save £60bn of taxpayers money. Tax surpluses could then be returned to the taxpayer within 30 days of the end of the financial year. This would make money the slave and not the people.
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Upharto
60 Fans
06:54 PM on 11/28/2011
Mr Cameron was in the north west today,where he said that the government was keeping the countries debt down,but he didn't say that he was going to stop giving tax payers money to the EU.stop giving money to this school for scroundrels and you stop our debt.
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Electrastar
65 Fans
05:13 PM on 11/28/2011
So how do you account for government spending going up since the CONDEM us all Party took office?
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ronnieince
57 Fans
08:39 PM on 11/28/2011
Very simple - they are not actually cutting back hard enough - the debt is still increasing but at a SLOWER rate than under the previous Government biut it wil take several years before it actually starts to fall and the total owed is actually reduced
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Upharto
60 Fans
04:52 PM on 11/28/2011
There is a quick fix Mr Osborne, tell you mate to stop giving our money to every other country.
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xsweetsuzix
hope for the best, prepare for the worst
74 Fans
05:35 PM on 11/28/2011
spot on upharto.
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BOMBAYMONEYLENDER
41 Fans
09:53 PM on 11/28/2011
never a truer spoken word .Kicking out other countries crooks who have set up in the uk would also help, and to hell with their human rights because ours are violated as the government is scared to tell them to go.
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staridler
29 Fans
04:36 PM on 11/28/2011
i must be going nuts for a split second i felt a bit sorry for oddball osbourne.
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