Public Borrowing Rises Yet Again
At the moment there seems very little let up in the raft of down beat economic surveys, results and figures. This trend continued today with figures from the Office for National Statistics showing that government borrowing for the month of May hit a record £11 billion. When you also consider that the April figure was revised upwards by a substantial £2.3 billion, it is not looking at all good for the public purse.
A number of City observers have also highlighted the fact that the government’s £2.7 billion tax giveaway, used to end the standoff over the 10p tax rate debacle, is yet to be added to the government budget. It also seems that tax income from the UK economy is set to fall over the next 12 months with little hope that extra oil tax revenues will offset the fall in tax income.
Spending has increased by £1.5 billion over the last 12 months while Treasury income has only risen by £1 billion, putting further pressure on public purse. While the authorities may attempt a number of short term cash and grabs, there is very little they can do to raise substantial funds with many consumers already taxed up to the hilt.
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