UK Faces ‘Debt Timebomb’ from Ageing Population

Institute of Economic Affairs calls for radical measures, including a smaller NHS, to bring Britain’s debt mountain back to sustainable levels.

Britain’s ageing population has created a “debt timebomb” that can only be defused, according to a respected think-tank, through a combination of significant spending cuts, faster increases in the state pension age and ending universal free healthcare.

The institute of Economic Affairs warned that the government would need to cut public spending by at least 25pc in order to get Britain’s debt down to sustainable levels.

In a set of radical proposals, the Institute of Economic Affairs called on the Government to end “unhelpful” policies such as the “triple lock guarantee” that ensures the state pension increases by the higher of inflation, average earnings or a minimum of 2.5pc every year.

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Source: www.telegraph.co.uk

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Liquidations at lowest rate since 1984, says Insolvency Service

Experts cautious as figures also show company administrations in third quarter this year rose 17% over the previous quarter.

The rate of companies being liquidated has fallen to its lowest level since records started in 1984, Insolvency Service figures show.

In the 12 months to September, one in 186 active companies, or 0.54%, went into liquidation in England and Wales, in a continuation of a downward trend since 2011. 

Experts welcomed the business insolvency figures as another sign that the economy is “firmly in recovery mode” but they also warned that firms will face growing pains as economic improvement continues and interest rates climb.

3,368 firms were liquidated between July and September, which is a 12 % fall compared with the same period a year ago and also the lowest quarterly total seen since spring 2008.

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