This email was sent to Money Box subscribers on 16 April 2010

Dear Listener

 

I have been plunging deep into debt this week. Not mine but the country’s (or the Government’s as one e-mailer insists it is). And I have discovered what could be just an interesting coincidence. Total Government debt is £952 billion but will rise to £1,095 billion next. So in 2011/12 the state will have borrowed £24,333 for each of its 45 million adult citizens. Which is almost identical to the £24,274 personal debt of people who go for help to the Consumer Credit Counselling Service. So perhaps our debt is at crisis levels.

 

You may recall my vain attempts a couple of weeks ago to reduce the annual government overspend when I played with the do-it-yourself public spending review programme at the Institute for Fiscal Studies. The main problem is that some spending – like state pensions – is protected and all politicians have agreed that some other things – like the NHS – have to be preserved.

 

So what there is left has to bear the brunt of the cuts. The arithmetic shows that unprotected spending has to be cut by around a fifth even to meet the targets set out in the Budget. No wonder the Financial Times said this week that there was a £30 billion black hole in all the parties’ manifestos. So whoever is Chancellor on the weekend after May 6th spending cuts if not tax rises will definitely be on his agenda.

 

ON MONEY BOX THIS SATURDAY

 

And talking of which, Money Box is on track to get interviews with the three men who could be Chancellor then. This week we are starting with the man who currently is – Labour’s Alistair Darling. Next week the Conservatives and Liberal Democrat Vince Cable on Saturday 1 May. If you have questions to put to them email moneybox@bbc.co.uk and I will try to include them. All hope to put the interviews on the web, at greater length, once they have been broadcast.

 

We have had what may well be a record response to our item last week on Nationwide, Britain’s biggest building society, which is trying to become the one with the shortest queues. As we reported, from 7 June cashcard customers will no longer be able to withdraw less than £100 over the counter. The response from Money Box listeners has been one of almost universal hostility to this move. We will report on what people are saying and get comment from Age UK.

 

Carers get new rights this month to full credits towards a state pension. But they have to take steps to make sure the Revenue and the Department for Work and Pensions know about their circumstances. They have to care for at least 20 hours a week (down from 35 under the old rules) for someone on disability benefits (same as the old rules) and they will get a full credit for each week (much better than the old and inexplicable ‘home responsibilities protection’ rules). More on the show.

 

First it was Iceland’s banks. Now it’s the country’s volcano which is disrupting our lives. If your flight or holiday plans have been stopped by ash in the stratosphere we have advice about getting your money back – and who from.

 

Finally an item from the déjà vu folder – the long awaited interview about whether and under what conditions China is a good place to invest your money. Fingers crossed it really will happen this week.

 

Money Box is at noon on Saturday, nine pm on Sunday, or on the website www.bbc.co.uk/moneybox at any time. There you can also watch videos, follow up items, read web pieces, download transcripts, follow links, and send us stories or ideas you want us to look into. And of course Have Your Say on one of these topics. 

 

Best wishes,

 

 

 

Paul

 

PS Don’t forget the programme preview on Breakfast BBC 1 soon after 0845 on Saturday.

 

 


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