Tuesday, 21 July 2009

UK borrowing explodes

Over the last six months, the UK government has borrowed ₤65 billion. In June alone, the borrowing requirement was ₤13 billion

During the first six months of 2008, the deficit was ₤20 billion. Yes, the first half deficit this year is three times larger than last year.

There is strong seasonality in the UK's fiscal accounts. Tax collections are strongest just before April when the tax year ends. During the second half of the year, the monthly government borrowing are much higher. Last year's second half the borrowing requirement was about ₤40 billion.

Assuming that it is the same this year, then the UK government could end up borrowing close to ₤200 billion this year. This is a borrowing requirement amounting to roughly 14 percent of GDP.

Brown and Darling won't get away with it. The UK economy is heading for the cliff.


Mitch said...

We appear to be best placed go bankrupt.

Anonymous said...

LOL, they already did get away with it. So what, they will be out of office. At their age, there is more to life than the pinacle of british politics. They will be home and dry with fat pensions and grandchildren to enjoy. The golden years.

Anonymous said...


Anonymous said...


Anonymous said...

And lets not forget the flattering effect in January and February of Self Assessed Tax income. All of it on earnings prior to April 2008, or when the shit hit the fan. Next year will be way worse.

Anonymous said...

They will probably get away with until next May or June, at which point they'll retire with a pot of (our) gold.