Wynd
Member
We already have rising inflation and a massive current account deficit. And paying hefty interest on the government debt, it's not free money
And somebody has to buy the government debt. If the markets consider that the country is being reckless in issuing debt, then it'll demand higher interest rates to buy it.
The BOE has bought 1/3 of the Gilt Market acting as Lender of Last Resort. The interest on these Gilts ends up back at the Treasury, who issued them in the first place. Recklessness is not something HMT suffers from when viewed internationally.
Under-investment and low productivity are what destabilize UK government debt as they pose a threat to long term repayments on the bonds.
This is the primary issue many are aware of. Investment in decarbonising the rail infrastructure is a good idea and makes economic sense long term. How else do you get modal shift without fast, clean, efficient, affordable public transport?
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