We'll never get our money back from bailing out the banks

17 March 2016

banks An independent Treasury watchdog is warning us all of something that we all invariably thought was inevitable anyway - the Office for Budget Responsibility said that the British taxpayer isn't ever likely to get their money back after bailing out the banks.

They say we're currently looking at a £17.5 billion, and we need to stop thinking of seeing that money ever again.

Now, the Chancellor obviously disagrees with this, as he's got that unswerving belief that all politicians have in themselves, despite the fact that they're so frequently wrong.

Osborne actually thinks we're going to make a profit from this whole affair, even though the share price for banks is down, especially at the state-backed Royal Bank of Scotland and Lloyds. The Chancellor is putting off the plans to sell Lloyds shares back to the public, and it looks like he doesn't know what to do with the RBS at all.

In the Budget yesterday, Gideon said that the Lloyds sale will be happening in Spring next year.

The OBR think differently about the whole thing, saying that, should the remaining shares be sold off, that's when we'll collectively incur our £17.5 billion loss, which is £7.2billion worse than the prediction last Autumn by the OBR. This is thanks in part, according to the watchdog's calculations, to do with the interest paid by the Treasury to keep our financial system going, which has now reached £24.4 billion.

Basically, shares in the banks are valued at half of what they need to be if the taxpayer is going to break even at the least. So there's some cheery, if unsurprising news for you!

TOPICS:   Banking   Investments

3 comments

  • Raggedy
    Seeing as how this government has a record of selling things off cheaply, did anyone actually ever think the tax payer would see the money again? Take the Post Office. Rated at £1.5 billion, they raised £541 million. What's worse is that the type of people who caused the problems in the first place will probably be the only ones that can afford the shares! Still, the government can always take more money from the disabled to make up the shortfall...
  • oldgit
    So that is the Labour government to thank then for paying so much for them in the first place.
  • jim
    so i suppose the banks will all be tightening their belts now - no big pay rises for bosses, maybe change their ways and be responsible with money- nope. not. a . chance.

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