puisseguin Posted October 19, 2012 Author Share Posted October 19, 2012 Borrowing hits record high, but we are borrowing less? Although for those able to read.. The figure is lower than analysts had been expecting, while previous months' figures for this financial year were revised down by a total of £6.7bn That must be terrible news for you. Link to comment Share on other sites More sharing options...
nightrider Posted October 19, 2012 Share Posted October 19, 2012 I just thought I'd post this to clarify a few points from those who claim the UK's budget deficit is rising. It isn't http://www.bbc.co.uk/news/business-20002050 UK public sector borrowing falls to £12.8bn UK public sector net borrowing was £12.8bn in September, down from £13.5bn in the same month last year, the Office for National Statistics has said. The figure is lower than analysts had been expecting, while previous months' figures for this financial year were revised down by a total of £6.7bn August's record figure of £14.4bn was revised down to £12.8bn. The government wants to wipe out the structural budget deficit by 2015, but analysts say this is unlikely. Public borrowing for the financial year-to-date now stands at £38.6bn, compared with £62.8bn this time last year. This takes total government net debt to £1,065bn, equivalent to 67.9% to total annual economic output. Interesting that the article also claims "The government has made reducing the country's debt levels its key economic priority and has introduced wide-ranging spending cuts to this end"! I don't think they have any such policy do they? The policy is to reduce the deficit is it not? That won't affect existing debt at all. Are they also increasing debt payments to reduce the debt? Link to comment Share on other sites More sharing options...
Mecky Posted November 21, 2012 Share Posted November 21, 2012 And again borrowing is up once more. http://www.bbc.co.uk/news/business-20424492 Link to comment Share on other sites More sharing options...
Cyclone Posted November 21, 2012 Share Posted November 21, 2012 The Government borrowed £8.6bn compared with economists’ forecasts of £6bn, as it grappled with weak tax revenues in what is usually a strong month for corporation tax receipts. In October last year borrowing was £6bn. Borrowing was higher than expected and higher than at this point a year ago (a far more valid comparison than the previous month). UK Debt continues to grow. The estimate for this year is that the government will have borrowed 120 to 130 billion pounds! Link to comment Share on other sites More sharing options...
Mecky Posted December 21, 2012 Share Posted December 21, 2012 Borrowing was higher than expected and higher than at this point a year ago (a far more valid comparison than the previous month). UK Debt continues to grow. The estimate for this year is that the government will have borrowed 120 to 130 billion pounds! Here's what the BBC say today (21/12/2012) http://www.bbc.co.uk/news/business-20808518 Link to comment Share on other sites More sharing options...
Gleadly Posted December 21, 2012 Share Posted December 21, 2012 It's reported today that government had to borrow slightly more than expected in November. It borrowed £17.5bn, £1.2bn higher than a year earlier, official figures show. Economists had predicted borrowing would fall slightly to about £16bn. Link to comment Share on other sites More sharing options...
gnvqsos Posted December 21, 2012 Share Posted December 21, 2012 It's reported today that government had to borrow slightly more than expected in November. It borrowed £17.5bn, £1.2bn higher than a year earlier, official figures show. Economists had predicted borrowing would fall slightly to about £16bn. If they continue to borrow how can they expect to pay down the LONG TERM deficit. Link to comment Share on other sites More sharing options...
biotechpete Posted December 21, 2012 Share Posted December 21, 2012 Borrowing was higher than expected and higher than at this point a year ago (a far more valid comparison than the previous month). UK Debt continues to grow. The estimate for this year is that the government will have borrowed 120 to 130 billion pounds! Yes total debt continues to rise, but annual borrowing hit a record high of £156.214bn as a result of the Labour government in 2009. It fell in 2010 to £149bn It fell again in 2011 to under £122bn The 2012 figure is currently lower still at £92.7bn. December borrowing was below target in 2010 and 2011. The borrowing figures for December are thus: 2009 £21bn 2010 £16.8bn 2011 £13.7bn So even adding the record December 2009 figure 21+92.7= £113bn, another projected drop in UK net borrowing continuing the trend successful deficit reduction. Of course there is a possibility that borrowing in 2012 may be slightly above last year, but it will almost certainly be lower than 2009 and lower than 2010. At least we are headed in the right direction. ---------- Post added 21-12-2012 at 14:02 ---------- If they continue to borrow how can they expect to pay down the LONG TERM deficit. The government are reducing the defecit in the long term and the plans have nearly eliminated the structural deficit (which is as close to a 'long term' deficit as I can figure). If we continue to tread this very narrow path of low borrowing costs and economic stabilisation, the liklihood is we will start to repay the debt with a surplus although records show that we are not much good at doing that: http://www.guardian.co.uk/news/datablog/2010/oct/18/deficit-debt-government-borrowing-data#zoomed-picture Sources: http://www.telegraph.co.uk/finance/economics/8280461/UK-public-debt-rose-less-than-expected-in-December.html http://www.thisismoney.co.uk/money/news/article-2091057/UK-borrowing-1trillion-ahead-target-December-deficit-plan-reach.html Link to comment Share on other sites More sharing options...
geared Posted December 21, 2012 Share Posted December 21, 2012 I imagine the defect will get beaten right down to 40-50bn a year. Then Labour will come to power, straight away borrow at 2009 levels and claim to have kick-started the economy. With the public placated we all board the great debt train and happily ride off into the future. Link to comment Share on other sites More sharing options...
Cyclone Posted December 21, 2012 Share Posted December 21, 2012 If they continue to borrow how can they expect to pay down the LONG TERM deficit. Do you mean long term debt? Deficit is the annual amount they add to the debt. Deficit is falling, but not as quickly as planned, which means at the moment that debt is still rising. Link to comment Share on other sites More sharing options...
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