One of the key features of our species which has made us so “successful” (let’s not derail matters too far by examining the meaning of that word) is the ability to ponder over “what would happen if” and also develop possible ways to deal with/respond to the related answer.
Seems that there are some among our species who have lost that ability.
I may be wrong but as I understand it is when the government “borrow” money it is not the same as we borrow money. The government are borrowing from themselves if that makes any sense and the interest rates are also a lot lower. I don’t fully understand it all so don’t have a go if I am wrong
So its just an accountancy thing then, and nuffink to do wiv actual costs
then ?
What do they call it?
Creative bookkeeping?? 
Why does the government borrow money?
The government chooses to “borrow” when it spends more than it gets in income.
Most of its income comes from taxes - for example, income tax from your pay cheque or the VAT you pay on certain goods.
It could, in theory, cover all of its spending from taxes - and in some years that has happened.
But governments have not always been willing to increase taxes enough to cover their spending. This is partly for political reasons - it would be unpopular with voters.
There are also other reasons for not raising taxes. If higher taxes leave people with less money to spend, it can be bad for economic growth and jobs.
How does the government borrow money?
The government borrows money by selling bonds.
A bond is a promise to make payments to whoever holds it on certain dates. There is a large payment on the final date - in effect, the repayment.
Interest is also paid to whoever owns the bond in the meantime. So it’s basically an interest-paying “IOU”.
The buyers of these bonds, or “gilts”, are mainly financial institutions, like pension funds, investment funds, banks and insurance companies.
Private savers also buy some.
Some also end up being bought by the Bank of England as part of its current attempts to boost spending and investment in the economy.
Under this policy - known as “quantitative easing” - the Bank has so far bought £875bn of government bonds and £20bn of UK corporate bonds.
@Omah , Thanks for that Omah, thats made things much clearer 
What l get from this is that it is just a big hire purchase scheme ?
Which means that some one somewhere must have some money stashed
away initially in order to finance the product being hired ?
Who is/are that/those person/ persons ??
Adding my reply from another thread:
So instead of getting the money stolen from us by oil companies back from them, she wants them to keep it - and we pay them it via taxes over time instead of all at once 
Why is that party full of absolute tosspots?
I think Ian Duncan Smith indicated their reasoning by saying that a lot of these fuel and energy companies are global and that if we tried taxing them, they’d simply move their money to different countries somehow. He exemplified it by saying that the 5 billion or so windfall tax levied a few months ago will most likely only yield 1 billion for this reason.
the Treasury…
That’s an interesting comment. If Russia don’t see Truss as a threat how would she put us a step closer to a nuclear conflict?
I am not filled with confidence of her abilities but the Russia /Truss headbutting is very misogynistic.
Are you forgetting this?
Not at all, but …
It is unclear precisely which comments by Ms Truss Russia objects to.
reminds me of Trump’s prejudice against Merkel and patronising handholding of May in that sleazy walk. Female leaders are never going to be “liked”
I think they might have been referring to her saying “it could end up with a conflict with NATO”
Back to topic…why not go the whole hog and borrow enough to pay for the total energy bill? Everyone will be warm and cosy, businesses will thrive and expand. We’ll all have that extra cash in our pockets to spend and help fulfil our aspirations. What’s not to like? Heck, things will be so great that not only will taxes never have to rise, in fact they would probably fall according to LT’s economic model.
@Dextrous63 , Wont work Dex, once the banks have lent all the money out
there will be no more money left to borrow, this accounts for
the system called “quantative easing” ?!
Now the world is awash with “money” and is the reason there are billionaires
now, where there were only millionaires just a few decades ago ?
Truss about to unveil plans to help with soaring energy bills
Hi
Spot on Boot.
Moved for clarity
Hi
Donkeyman, Government Finance is very different to mine and yours.
Me and you are the same, we know what is coming in and we know what our bills are.
We are not like Government, our income does not go up as fast as the bills.
We cannot suddenly invent extra money.
The Government can, but and the big but is that it is noat a give away, we pay for it later,
Hi
So now we know, prices capped at £2500 a year, which in my my case means £34 a week extra which will not be spent in the economy.
If you add that to the increase in supermarket prices, that is recession time.
Energy price cap to be set at £2,500 a year
The energy price cap will be fixed at £2,500 a year for a typical home, Prime Minister Liz Truss announces, for two years from 1 October.
She says she promised she would deal with soaring energy prices for families and businesses, adding today she is doing just that.
Truss adds the government is moving immediately to introduced a new price guarantee to protect them.
The plan will save the average household £1,000 a year, Truss says, and comes in addition to the £400 energy bills discount that has previously been announced.
After that six-month period, ministers plan to offer “focused support” to vulnerable industries.
Business energy costs capped for six months
Businesses will see their energy costs capped at the same price per unit - or kilowatt hour (kWh) - that households will pay under the government’s new plans.
The scheme will run for six months. Though this will be reviewed in three months’ time to see if the help should be more targeted towards certain industries. It could then be extended for vulnerable businesses such as the hospitality sector.
The scheme for businesses is in sharp contrast to the help being offered for domestic customers which will be in place for two years.
No windfall tax
We will not be giving into the leader of the opposition, who demands a windfall tax to fund the freeze, says Truss.
She says it would undermine the national interest, by discouraging the very investment we need to secure home grown energy supplies.
Truss says the government recognises people are struggling with their energy bills and adds emergency legislation will be brought forward to deliver the policy.
How the plan will be paid for will be laid out by Chancellor Kwasi Kwarteng as part of his fiscal event later in the month, she says.
Truss says action is also being taken to reduce the cost of energy over time.
A new Energy Supply Taskforce will negotiate with suppliers to agree long-term contracts, that reduce the price they charge for energy. They will negotiate with renewable producers to reduce the prices they charge as well.
“This is the moment to be bold”, Truss says, adding that there are “no cost free options” to the dealing with the global energy crisis.
There will be a cost to this intervention, she says.
Truss explains way the government will “defray” the cost is by ramping up supply.
Truss adds this means accelerating all sources of energy, including new north sea oil and gas contracts for exploration.
New oil licenses planned
Truss says government will launch a new oil and gas licensing round as early as next week, expected to lead to over 100 new licences for oil and gas drilling in the North Sea.
Ban on fracking lifted by the government
The ban on fracking, a technique for recovering gas and oil from shale rock, will be lifted by the government.
This will allow developers to seek planning permission where there is local support, Truss says.
Truss: Package will curb inflation by up to five percentage points
Liz Truss says her package will help curb soaring prices. Rising energy bills have been a key part of rising inflation in the UK.
Truss aims for UK to be an energy exporter by 2040
Truss says the UK will deliver a stable environment to give investors’ confidence as “we transition to net zero” .
She says the government will make sure the UK is a net energy exporter by 2040, through the use of fracking, expanded nuclear and renewable energy generation.
Truss talks the talk but money talks more … 
