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Govt borrowing figures unchanged in August

Treasury 480

The August public sector borrowing figures are unchanged at £14.4bn, compared to the same period last year.

In July, there was £557m extra Government borrowing, meaning the period from April to August has seen borrowing increase 22 per cent higher on the previous year.

In August, corporation tax receipts fell 2.1 per cent as benefit payments rose 4.9 per cent.

Labour’s shadow Treasury financial secretary Chris Leslie says it represenst the highest borrowing figures ever in August and is down to the Government’s economic plan “failing”.

He says: “This is billions more in borrowing not to invest in the jobs of the future, but simply to pay for the mounting costs of economic failure as the double-dip recession leads to higher benefit bills and lower tax revenues.”

There are some positives for chancellor George Osborne as the Office for Budget Responsibility forecast, published in March 2012, showed an annual deficit of £126bn for 2011/12 but the ONS estimates it was £119.3bn.

At the end of August, the national debt stood £1,04trn at 66.1 per cent of gross domestic product, comapred to 62.7 per cent last year.

Last night, Bank of England governor Sir Mervyn King said it would be acceptable for the Government to miss its target of having falling debt by 2015 if it was caused by global low growth.


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There is one comment at the moment, we would love to hear your opinion too.

  1. The highest recorded public sector net borrowing since records began for the month of August at £14.4billion confirms that continual innovation to make the nation incrementally economically healthier and new fundamental beneficial rethinking forms no part of Whitehall’s long-term economic analysis. Indeed since 2001 PSNB has doubled with no downward trend recorded over those years, just upward debt. But added to the fact that our trade deficit with the rest of the world is also at an all time high and has been in deficit for decades, it is clear also that at the creative level, Whitehall again does not know what it is doing. In this respect Oxbridge brains clearly do not convert into economic wisdom and positive economic transformations. It is therefore more likely than not that PwC chief economist’s assessment that by 2015 the UK’s total debt (all public and private debt) will be hovering around a massive $16.2 trillion equivalent, or more than 1/5th of the total economic turnover of the whole world. Therefore the dismantling of barriers and the introduction of new fundamental external thinking into Whitehall is absolutely vital for the future good of Britain. For the days of they think that they know best is well and truly over.

    Dr David Hill
    Chief Executive
    World Innovation Foundation
    United Kingdom – Switzerland

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