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Government borrows record £15.9bn in August

The Government borrowed £15.9bn in August, the highest August figure since records began.

According to the Office of National Statistics, the Government is now running a monthly deficit of £13.3bn, up from £11bn in August 2009.

The ONS says the public sector current budget was in deficit by £46.6bn between April and August 2010. This is a £3.9bn lower deficit than in the same period last year, when there was a deficit of £50.4bn.

The Government is set to run up a net debt of £823.3bn or 56.3 per cent of GDP in 2010, up from 2009’s debt of £667.7bn. This debt rises to £934.9bn or 60.4 per cent GDP if all the inventions as a result of the banking crisis are taken into account.

Barclays Capital analyst Simon Hayes says: “We do not draw any strong conclusions from today’s news regarding the medium-term outlook for the deficit, which the evidence so far suggests will come in a little below the Office of Budget Responsibility’s full-year forecast of £149bn. However, this record level of borrowing will keep the pressure on the government to press ahead with its ambitious deficit reduction plan.”


CPMA will ‘play second fiddle’ to PRA

Regulatory consultant Bovill says the Consumer Protection and Markets Authority may struggle to recruit skilled staff because the Prudential Regulation Authority will be seen as the predominant regulator. In June, the Government set out plans to scrap the FSA and give responsibility for prudential regulation to the PRA and conduct of business regulation to the […]

Cazenove to launch diversity income fund

Cazenove Capital has announced the launch of a new multi manager fund, to be run by Marcus Brookes and Robin McDonald. The Cazenove diversity income fund, which is set to launch in the fourth quarter, will follow a similar investment approach to the existing multi-manager diversity fund, but the emphasis will be more on income. […]

Gross mortgage lending down 14% in August

Gross mortgage lending fell to £11.4bn in August, a 14 per cent drop from the £13.3bn reported in July, according to the Council of Mortgage Lenders. The August total is also 6 per cent down from the £12.1bn recorded in August 2009. It is also the lowest August total since 2000, when gross mortgage lending […]

Investment clock economic update

In the latest Investment Clock economic update, Ian Kernohan, Senior Economist at Royal London Asset Management, discusses the implications of the US Federal Reserve’s recent hike in interest rates and upcoming French presidential election. The value of investments and the income from them is not guaranteed and may go down as well as up and […]


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