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Original poster

Is bankruptcy inevitable now for the UK

352 replies

BringOnTheHandyMan · 16/05/2026 20:05

In the most layman of terms the UK is actually broke.

Every month we cannot pay the interest on our outstanding debt and thus have to borrow more. (Note this is not repaying the capital, just the interest)

The rate we pay to borrow used to be quite low and that is not the case anymore.
The bond markets have lost faith in the UK and charge us a rate that reflects it.

We have systems we can no longer afford (welfare, NHS etc)
We have little to no growth
We have inflation issues (so printing money is out)
Raising or cutting interest rates is problematic due to having both growth and inflation issues together
Our politicians are scrapping like rats in a barrel and even prior to that they seem incapable of making hard decisions or even facing up to the mess we are in.

We do actually need a PM that stands up and says okay folks we are in deep shit. We are broke. Actually worse than that. In debt and unable to pay even the interest.
So any borrowing we do must be for investing/growing the economy only. All spare money must be used for paying down debt or investing/growing the economy. That means for the foreseeable future all state funding is scrapped. We would enter a period of being very much a 'poor country' and acting like it. If we worked really hard we might be able to turn it around but it would take years, hard decisions and many, many sacrifices.

Since I can't see any party being able to actually do that. Then I honestly don't see how we can go anywhere except an IMF bailout. Then they will play the tough guys and cut the lot anyway.

I try to plan for my retirement but honestly it's sort of impossible.

For those with public sector pensions I wouldn't be sure you will get it paid
For those with private defined contribution pensions, the stock market is vastly overpriced just now and your pension is likely to fall once the AI bubble bursts.
State pension - yip not convinced we'll be getting that
Costs to be budgeted for - healthcare but how much?
Downsize my house - perhaps but will house prices tumble making this impossible.

Does anyone think that any government (regardless of party) can fix the country. If not what happens. The UK used to have no NHS or welfare so do we just go back to that. How long will it be until the wheels come off?

Lots of threads about which benefits should be cut etc but nobody seems to be shouting that actually it ALL needs to be cut regardless of what hardship it causes.

OP posts:
MissConductUS · 24/05/2026 15:01

GasPanic · 24/05/2026 12:33

What this misses is that it is young people that are most likely to leave in search of new opportunities.

Older cohorts generally won't.

So generally if you are going to tax harder it is best to skew that towards older age groups if you are concerned about economic migration as a result of tax.

Tax is also best levied on things that are relatively difficult to move/are locked in.

It's hard to practice tax avoidance with land and pensions.

This also co-incidentally automatically pushes tax towards the most wealthy.

Show quote history

It did not miss that point.

The stereotypical British émigré used to be the retiree packing up for sunnier climes in Spain or France. These days it’s the younger worker who moves to Dubai for lower taxes and then delays returning to Britain. These are some of Britain’s most entrepreneurial people, and they’re spending their prime tax-paying years out of the country.

FernandoSor · 24/05/2026 15:23

Twinandatwoyearold · 23/05/2026 06:18

A suggestion I don’t remember seeing - charge 50% tax on any money being sent from the U.K. to a country where we give foreign aid (remittances). I’d do this immediately. Now the gov may choose to donate a percent of that money eventually but not now. If people are flying to their country of origin (on the 50% list) and are caught taking it out of the country in cash it’s 100% tax.

I would tax remittances at 100% if a country refuses to take back people we want to deport.

No benefits to anyone from abroad who has not paid into our system for 15 years. (Similar to how a state pension is accrued). We can’t afford such a luxury anymore. We are clearly too poor. That includes no council houses, no benefits, no pensions, no universal credit, child benefit, DLA, no housing benefit, pip or pension credit etc.

I would not dream of moving abroad unless I could support myself and if I lost my job I’d return to the U.K.

Deport all foreign criminals to free up prison space and reduce crime in the community. Deport all foreign tax evaders/money launders/those working in the hidden economy. (I’d deport criminal citizens too but we don’t have that luxury). Long sentences for violent offenders as there will be more prison space. This makes the law abiding women and girls and boys and men safer. If that makes me a meany and takes away my ‘progressive’ badge then who cares!

An honest conversation with the public. Cut the size of the state. The aim being to increase trust and participation and safety.

If they deported foreign criminals and made the streets safer. Stopped benefits for foreign arrivals. Locked up rapists and violent thugs.
If I trusted they were genuinely acting in the interest of the public and I felt safe I would happily donate 4 hours of time a week to improving our country. Litter picking. Painting fences. Cleaning signs. Clearing a canal. Or using professional skills if that is preferable. Whatever they need. I would happily volunteer to improve the country. I doubt I am the only one. The benefit to me is a nicer community, Good for mental health, get to know likeminded people.

I won’t be doing it for this wasteful government - they are clearly set to ruin small businesses (for their corporate friends?), bankrupt farmers (our food security is vital), and bankrupt the nation. Let off criminals. All while tax evading and getting convicted of crimes abroad and every other bloody scandal.

I want an honest government that reduces their costs quickly and makes us safer. Someone above said High Trust, High Participation. Great slogan!

I’m a floating voter and being tough on crime is my main issue and reducing gov spending is number 2.

Edited

Meanwhile the likes of Amazon UK and Google UK remit billions per year to the US and pay virtually no taxes. But yeah, it’s Amrita sending fifty quid a month back to her parents in Delhi that’s the real problem.

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