The current spending cuts discussion is taking place against the context of a national debt estimated by official government figures as £772bn (54% of GDP). In fact the national debt more accurately estimated by including pension liabilities, and a reasonable estimate of the likely liabilities to be incurred by the government in respect of the banking sector is actually £4.8 trillion (333% of GDP), over six times the size of the declared national debt.
On this measure, the UK’s debt has increased by £674bn (16%) since 2008, from £4.1 trillion to £4.8 trillion.
In 2008 the national debt per person was around £67,000 - now it is about £78,000.
Liabilities from financial interventions make up £73bn of the debt, while public sector pension schemes compri