You can read all 237 pages of the UK Government pre-budget report if you really want to, but to save time, cut to the chase o page 198. This tells us what the Government earns, spend and the difference between the two, and explains the headlines we have been reading. The biggest one shows UK Government (or is that ‘our’?) debt growing to £1,084,000,000,000 in 5 years time. That’s £17,777 owed by each person and child in the UK, at 2007 population levels. This time it’s serious. See Thus passim for more on the UK’s parlous credit status. (Thanks to Buckle, Green for pointing to p. 198. I personally have no intention of reading this meritricious jibber-jabber).
Innovative retail finance will replace failed banks with Scottish names
Beggars can be munificent, however. It’s cheering to note that the deposits of 10,000 savers with London Scottish Bank, a former secondary banker (credit trader) have been guaranteed by the government Financial Services Compensation Scheme. though the bank has gone into Administration (Chapter 11). London Scottish was a sub primer lender by any definition. Its business was old-fashioned money lending to people with a poor credit history, debt collection and fixed interest deposit accounts. It was a better example than most of this somewhat rancid but arguably necessary business, but its elevation to the status of a bank serves as an example of the failings of regulation in the UK financial services sector. While pleased for the depositors (but puzzled as to why folks would deposit money with the tallyman), I wonder if Gordon and Alastair were swayed by the faux-ethnicity of this Manchester ‘bank’. ‘London Scottish’ which joins Bank of Scotland and Royal Bank of Scotland in putting out the begging bowl. Next, pawnbrokers may be eligible to apply to the government to guarantee pledges, secured against dodgy watches, bling and musical instruments. UK plc might become a leading secondary market for such items, replacing our financial services industry, until a few weeks ago the envy of the world and other planets.
