So:
The huge cost to the taxpayer of Labour\’s commitment to the private finance initiative since it came to power a decade ago is revealed by the Treasury in a report by MPs published today. It shows that Gordon Brown has committed future governments to pay back £170bn by 2032 to banks, investors and private entrepreneurs for more than 800 schemes for new hospitals, schools and prisons.
Does this number currently appear in the public accounts as a future liability? If not, why not? And will it be put into them in future?
Future commitments are a ‘disclose only’ item. They’re not really ‘liabilities’ in the accounting sense of the word, because the events which will cause you to be liable for the money haven’t all occurred yet. Also the state doesn’t receive the benefit of the hospitals, schools, etc. until a future period.
Incidentally, they use a variant of this argument to (incorrectly, in my view) keep ALL future state pension liabilities off the books. So, even though you can get a little statement from NICO telling you how much state pension you will get in future, that isn’t recognised as a liability in the Govt books. Even if you’re due to retire tomorrow and have ‘earned’ that pension through your lifetime contributions. Why? Because, in theory, they could change the law to strip you of your entitlement. So they recognise nothing at all until the day you retire, then they start booking it as an expense on an annual basis.
Meantime, companies must match the cost of employee pensions against the periods in which those employees work!
This sounds like its straight out of the Enron school of accounting.
I would like to nominate our club chiaamrn Jackie MooneyFor the past 20 years he has given his life to the club, previously he was a player . and has taken them from a pub football team with no football pitch to giving up his time to drive the fundraising and build a football pitch with changing rooms etc and now has 11 youth teams with over 200memberseven if he is the only one available to stand in the rain for a bucket collection he will do it.He is a self-employed joiner who has taken many days off work, sacrificing his earning potential in order to raise funds or build/work at the club at no charge, or working in the evening to make up for missing hours of work due to looking after matters at the clubbut he never stops- he is now tirelessy trying to get 240,000 worth of funding for a 3g allweather pitch, as due to his efforts the club has 11 teams all playing matches and training on one pitch! which is causing major damage. In his mind he is thinking if he doesnt do it now , who else will do it if hes not around??Jackie has put much of his own money into the club, paying bills til the club raises the money to pay them, He won the club lotto a few years back and when builders are finding these times hard, he didnt take the winnings but paid an oil/electricity club bill instead and told no one.I think he deserves to receive something, for this generosity of time and money . without Jackie an people in clubs like him they simply would not exist .. Yes we are related hes my dad, so i see exactly what he puts into the club, where others may not realise the extent to which he gives up his life for the club.