London Banter - View Single Post

Mark Bestley[_2_] · January 8th 18, 02:00 PM posted to uk.transport.london

Recliner wrote:

On Mon, 08 Jan 2018 07:33:05 -0600,
wrote:

In article ,
(Recliner) wrote:

On Mon, 8 Jan 2018 12:09:56 +0000, Roland Perry
wrote:

In message
-s
eptember.org, at 11:17:32 on Mon, 8 Jan 2018, Recliner
remarked:

How do you know what the cost of political upheaval after raising
taxes is likely to be?

But they wouldn't raise taxes. They'd just borrow the money more
cheaply, thus ultimately reducing future taxes.

What makes you think they have the power to borrow the money required?

Are you joking? Of course the Treasury can borrow more. It does so
all the time.

But the Treasury has to give TfL permission to borrow through them. And they
aren't.

I agree, but as I'm saying that's increasing the costs. Or TfL could
be allowed to issue its own bonds, which wouldn't be quite as cheap as
doing it through the Treasury, but would be a fraction of the cost of
a sale and leaseback of an old Tube fleet.

The issue is that would be seen as government backed as well, Increasing
government debt affwcts the interest payable on it thuis raidung
government spending. ALso there are many people complaining about
increasing debt. See the history of BR for underinvestment due to this.

What fraction of the cost of a sale and leaseback of an old Tube fleet
be? .001? or 99%?

--
Mark