Budget 2015 thread

[d000hg]

Well "in real terms" is really all that matters. It doesn't matter if you're a millionaire, if a packet of crisps costs 500k.

[VectraMan]

Also, it depends on the levels of inflation vs interest. If you owe £10, which could buy you 10 pebbles, then in 5 years you find inflation means that the £10 only buys you 1 pebble then inflation has reduced the debt. If the interest on that loan had accumulated so that you now owe £110, however (11 pebbles worth) then you're still worse off.

And nobody is going to lend money at less than inflation, as that's how the lenders make their money.

[alphadog]

The tax-free personal allowance to rise from £10,600 in 2014-5

I think you are one year out? My understanding is that it will be £10,600 in 2015-16, etc...

[Contreras]

Are you sure?

Debt is the value we're interested in
The rate of change of debt (1st derivative) is the deficit, which is positive
The rate of change of deficit (2nd derivative) i.e how fast the deficit grows/shrinks, which is negative, is the debt acceleration

Hence it's perfectly normal for the debt to be increasing but at a slower rate and this is a good sign.

aghh.

Thanks. So they could have saved the spin and simply said that the 2nd derivative had turned negative.