http://www.telegraph.co.uk/news/electio ... -each.html
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| Quote: The scale of the £65billion ‘black hole’ in council pensions could cost every household as much as £3,200 each over the next 10 years, a leading pensions expert says. | |
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This will have to be addressed. Labour will have a tough time dealing with it, and the Tories will bring the country to a halt as council workers go on strike as a result.
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| Quote: A spokesman for the Local Government Association said: "If the UK was to experience a decade of stagnant economic growth it would be unprecedented and the entire Western world would be in no end of pain. "These figures have been compiled for little more than pure shock value." | |
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The problem is that unless asset prices adjust to a lower level this will mean we have more than a decade of stagnation as prices hold until they are in balance. The alternative is another slump in property prices before a sustainable property market is created. That will mean deflation and a lot of pain. Either way local government will be increasing rates to just stand still, and cover pensions.