Fact of the Year

 

The UK Treasury’s accounting practices only include liquid-assets when measuring the net income of a local authority.

 

What this means is that any investment in non-liquid assets (in other words, any serious capital formation – be it R&D, human capital development, new infrastructure or patient capital of any kind) is only ever counted as a loss and an increase in total debt by the Treasury. It is, therefore, severely discouraged.

 

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