Some reports make the UK's debt to be the worse in the world when aligned to the GDP. Estimates vary between 120% and 300% of GDP. Those figures don't even include hidden debt such as future pension liabilities.
For years now it has been no secret that the public sector employs more people than the private sector does in the UK. In fact in some parts, Northern Ireland, for example over 60% of all employment is either directly or indirectly dependent on governmental monies.
For too long now past governments, in particular the last one, ‘New Labour' have been practicing old labour traits of expanding the public sector. Expanding it from some 45% in 1998 to approximately 52% in 2009 of all those employed in the UK. This took an already unbalanced situation into a disastrous lopsided one.
It is patently obvious that the 48% employed in the private sector can not continue to support the 52% in the public sector, hence the shortfall, the need for borrowing so much and all the consequential debt problems accumulating over the last decade.
On top of that in their years in power New Labour doubled government bodies like quango's and threw money away like an octopus with ten arms in areas like the NHS in a pathetic attempt for a cure all. They will never learn that careful quality management is the way ahead, throwing money at a problem only feeds the symptoms and will never cure the cause.
The present coalition government recently reviewed 901 bodies - 679 quango's and 222 other statutory bodies, and are now set to cull 192 of them and estimate a saving of several £10's of billions.
At the same time the coalition are desperately trying their best to cut numbers in the public sector to adjust the balance. This is an uphill struggle, as downsizing, and cutting back is far harder to achieve than increasing investment and just growing departments.
I would conservatively estimate that cutting local and central governments numbers by 30% would adjust the balance between the two sectors and solve a large part of the future debt problems.
The alternative, which is what Labour's policies were leading to is simple it is bankruptcy.
John Herbert
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Source: http://www.articlesbase.com/economics-articles/public-verses-private-sectors-in-the-uk-5466569.html Article Tags: coalition, government, labour, conservative, liberal, backruptcy, debt, gdp, uk debt, public, private, employment, quango, local government, great britain Latest Economics Articles More from Johnny Herbert 
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