Public sector borrowing hits record high
The UK government borrowed £20.3 billion in November to fund public sector services in the UK, the highest figure since records began in 1993. While the £20.3 billion question was less than some analysts had expected, it does perfectly illustrate the worsening financial situation in the UK and the fact that it will not be "fixed" overnight.
The office for National statistics also confirmed that public sector debt in the UK has now reached £844.5 billion, or 60.2% of gross domestic product (GDP), which when compared to the figure of November 2008 - £15.5 billion of borrowings, £706 billion of debt which was 49.6% of GDP - is of serious concern. The very fact that the figures are not as bad as analysts had expected is a reflection of how downbeat and depressed forecast for the UK economy have become over the last few weeks.
As we have mentioned recently, the UK government is under more and more pressure to release a detailed response to the growing debt problem and it rumours Gordon Brown is holding Alistair Darling back from revealing the "true extent" of the UK problem. However, there is no doubt that the government will be forced to issue a detailed response to the growing debt problem in the short to medium term.
Share this..
Related stories
Gordon Brown causes international row over banking tax
As we covered in one of our earlier posts, Gordon Brown has caused an international row over his demand for a banking tax on all international financial transactions. The move, which was mentioned some time ago, has effectively been blocked by the US government leaving Gordon Brown and the UK authorities high and dry and "out of the loop". This is a tax which has been discussed for decades and is...
Read MoreHM Revenue and Customs announces national insurance holiday
HM Revenue and Customs have today announced a surprise national insurance holiday for new companies in the UK in areas of the country likely to be hardest hit by the reduction in public-sector investment. Those who are eligible for the national insurance holiday will be able to claim relief for the first 10 employees they hire in their first year of operation. HM Revenue and Customs believes that...
Read MoreDelayed tax rebates are causing problems
While the UK tax authorities are becoming quicker and quicker on the draw when you owe them money the situation is not replicated when the taxman owes you a rebate. The number of examples of mis-management by the Treasury Department has been growing over the last few weeks with some people in danger of losing their home due to mortgage arrears even though the taxman has admitted tax rebates are du...
Read MoreWho will David Cameron target with tax rises?
There is intense speculation this morning as to who will suffer most in the forthcoming budget which is almost certain to see UK taxes increase in the short-term. The emergency budget, scheduled for 22 June, will give us our first glimpse of which way the UK coalition government will fall with regards to tax rises. So who will suffer most? There is no doubt that those on higher incomes in the U...
Read MoreDavid Cameron to maintain union funding if he is victorious
Despite the fact that David Cameron is in many ways seen as the devil in disguise by the trade union movement, it has been revealed that a number of trade union funding programs would be maintained under a Conservative government. While in public David Cameron has been very critical of the union movement, in reality he has set about trying to mend bridges which were broken during the Margaret That...
Read More