The budget has yet to entirely unravel this year though there are some nasty figures buried in the small print. The Centre for Policy Studies has spotted that deep within the Budget Red Book is the admission that the cashflow shortfall between public sector pensions’ contributions and pensions in payment is now forecast to double within 5 years. The pensions gap is growing to such an extent that it will soon represent a significant driver of the deficit. The 2013 Budget now forecasts a Public Sector New Borrowing Requirement of £96 billion for 2015 – the year the Coalition optimistically intended to close the deficit. At £13.6 billion, the pension cashflow shortfall will then be equivalent to 14% of the deficit. Unaffordable.

To put it plainly the government will by 2015 be borrowing £1 in every £7 it borrows to cover the gap in public sector pensions, at a cost of £1,500 to every household every year. So much for the post-bureaucratic age…