How high will the UK budget deficit go?
As we continue to digest news of the £16 billion borrowed by the UK government in August alone to cover the budget shortfall, even though many people believe we are still on target for a £175 billion deficit for the tax year, there are some who believe this figure could be very conservative. So how high can the UK budget deficit go?
While there are differing opinions as to how high the UK budget deficit will go some believe the figure could hit as high as £220 billion in the current year and see UK national debt fast approaching £1 trillion (even though many people believe the true figure has broken his barrier already). So what do these figures actually mean?
When you consider the UK government has borrowed £65.3 billion so far in the 2009/10 tax year, this is the equivalent of £1070 for every person in the UK!
This is a very frightening situation for UK taxpayers and although the UK government is on the face of it remaining calm and focused, the ever-growing benefit payments in the UK are starting to take a massive toll. Whether or not the Treasury underestimated the depth and length of the recession remains to be seen but recent figures appear to be moving out of kilter with previous forecasts.
Share this..
Related stories
Has the UK government blocked the closure of Cheltenham and Gloucester?
Only two months ago Lloyds bank was adamant that all 164 branches of the Cheltenham and Gloucester would close as the bank sought to reduce costs and slim down for the future. However, Lloyds bank has today released a surprise statement confirming that the company is going to revisit the potential closure of the Cheltenham and Gloucester branches and until the review is complete the operation will...
Read MoreExpat pensioners take UK government to court
The UK government is being taken to court by a group of British pensioners living overseas because of the differing levels of state pension received depending on which country in which you reside. Many people may not be aware that even if you leave the UK after your retirement you are still entitled to receive the state pension in whichever country you move too. However, it appears that the level...
Read MoreHas Boris Johnson put his first foot wrong?
While the Mayor of London, Boris Johnson, has been at the centre of many political stories and many political controversies in the past, he has until now led a fairly charmed life as the Mayor of London. Problems have come and gone, excuses have been made and released and ultimately the power of Boris Johnson and his team has amazingly remained very resilient. However, he is now taking on the capi...
Read MoreO2 announces cash cards for 13-year-olds
Last year we saw Lloyds bank issue a number of debit cards to children as young as 11 without asking for parental permission and this year it seems that we are set to see mobile giant O2 issue cash cards to children as young as 13. The rollout of the O2 visa cards is expected to start this summer and will immediately enable holders to acquire goods over the Internet.
While the idea...
Gordon Brown leads and the rest follow
A gathering of European leaders in Brussels has today taken a rather surprising turn with France and Germany backing Gordon Brown's one-off super-tax on UK banking bonuses. This takes us back to the time when Gordon Brown decided to use taxpayer's money to take stakes in ailing banks in the UK, a strategy which was taken on by a number of European counterparts. However, it is worth recalling that...
Read More