Public Finances

Based on the Government’s current plans, we will reduce overall public expenditure by 25% and cut taxes by 20%. 

A key aspect of our plans is that they do not involve any public sector borrowing or interest payments on existing debt. We believe that the United Kingdom’s public debt and unfunded liabilities are unsustainable, and get in the way of good government, economic development and future prosperity. 

Current UK government liabilities including public sector pensions and debt are over £5 trillion or around £80,000 each for every man, woman and child. Realisable assets are virtually zero. It is time to grasp the nettle and deal with the debt problem.

We will put in place arrangements for holders of gilts to sell them at face value to the Bank of England. The Bank would then write off these purchases and the existing debt it holds.

We believe in honesty and transparency, and that public sector borrowing goes hand in hand with bad government and poor value for money. People should pay for what they get, judge the services and be encouraged to vote accordingly.

We will not make contributions to unfunded public sector pensions schemes. Past pension promises were not backed up with pension provision and can not be afforded by the current and future generations. In recognition that public employees have been betrayed by past governments, we will introduce hardship arrangements that will ensure that every public sector pensioner whose scheme is unfunded receives a pension payment equivalent to the average private sector pension.

Public Finances  
Existing plansOur plans
Expenditure£bn£bn
Education115230
Health178225
Law and order3820
Welfare and pensions28590
Defence586
Transport4445
Local6865
Other14219
Total928700
Taxation£bn£bn
Income tax208
National insurance150
Education tax0230
Health tax0170
Health VAT055
VAT161105
Corporation tax580
Fuel and tobacco4940
Rates7055
Other17745
Total873700
Figures are based on 2020-21, excluding COVID 19 for notes go to thepeoplesparty.com/peoples-polices/public-finances