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Could UK government borrowing hit £180 billion next year?

The renowned Ernst & Young Item club has caused controversy in government circles today by suggesting that net borrowing could rise to an incredible £180 billion in the next tax year. This far exceeds the forecast for the 2009/10 tax year released by the Treasury only a few weeks ago. Ernst & Young believe that the UK economy and public finances are deteriorating at an alarming rate which is set to cause serious concern in investment markets.

As you might expect, opposition parties have been quick to pounce on to these figures suggesting that the current economic situation in the UK is the worst in peacetime and set to deteriorate even further. Gordon Brown's economic prowess has been thrown out the window and his time at the Treasury has now been shown to have had serious shortfalls. If the report from Ernst & Young was a one-off then the UK authorities could effectively ignore this however this comes on the back of the IMF suggestion that the UK budget deficit for next year would be an incredible 11% of GDP.

After seemingly taking proactive action against the alarming downward spiral in the UK economy, the government has been seriously left wanting of late and even the new ongoing quantitative easing program may not be enough to save the UK from a possible depression.

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