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Interest paid on Governments credit card could double funding for social care, says ICAEW

Tuesday 24 January 2017, Commenting on the Public Sector Finances for December 2016, published today by the ONS, Ross Campbell, ICAEW Public Sector Director, said:

“For many years now the Government has borrowed to fund cash spending, resulting in the accumulation of substantial debts. Loading up the UK’s credit card with no comprehensive strategy to pay off these financial obligations will only create problems for the future generations who will be left with significant bills. The amount of interest Government pays as a result of its credit card debt – which is £39 billion annually - equates to £50 per person per month. This could be used to double the amount of funding allocated to social care – currently sitting at £35 per person per month - and relieve the financial pressure on local authorities, thus preventing the need for Council Tax hikes.”

“If we really do want the UK to be the best place to do business, as the Prime Minister will be pushing for in her negotiations with our European neighbours, we need to ensure that our public finances are in good shape. This must begin with the Civil Service striking the right balance between financial and commercial skills, which will equip them with the necessary tools to get the public finances back into the black.”

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