Public finances in the red
Lower tax receipts than expected and a sharp rise in government spending edged public finances further into the red last month.The deterioration raised public sector net borrowing for the five months since April to £28.2bn, about 70 per cent higher than the £16.5bn recorded a year earlier.
Housing slump creating vicious circle - Sep-18Surprise rise in UK retail sales - Sep-18Sharp rise in UK jobless claimants - Sep-17Chill of credit crunch spreads wider - Sep-18Bank sees further signs of slowdown - Sep-17Outlook for UK manufacturing sector worsens - Sep-17For the month of August alone the net borrowing requirement was £10.4bn against £8bn in 2007. Total tax receipts for the first five months of the current fiscal year grew at about half the 5 per cent rate expected as the sharp slowdown in economic activity and declining profitability of companies took their toll.The figures suggest that the government is on track to run the highest deficit relative to national income in 13 years and the highest since Labour was elected in 1997. If borrowing continues at its current high rate the deficit would be equal to 4.4 per cent of national income this financial year. By historical standards, it is not unprecedented. The deficit was still 4.7 per cent of national income in 1995-96 as Britain emerged from the recession of the early 1990s. According to the latest data from the Office of National Statistics, tax receipts from April to August were £205.4bn.
Housing slump creating vicious circle - Sep-18Surprise rise in UK retail sales - Sep-18Sharp rise in UK jobless claimants - Sep-17Chill of credit crunch spreads wider - Sep-18Bank sees further signs of slowdown - Sep-17Outlook for UK manufacturing sector worsens - Sep-17For the month of August alone the net borrowing requirement was £10.4bn against £8bn in 2007. Total tax receipts for the first five months of the current fiscal year grew at about half the 5 per cent rate expected as the sharp slowdown in economic activity and declining profitability of companies took their toll.The figures suggest that the government is on track to run the highest deficit relative to national income in 13 years and the highest since Labour was elected in 1997. If borrowing continues at its current high rate the deficit would be equal to 4.4 per cent of national income this financial year. By historical standards, it is not unprecedented. The deficit was still 4.7 per cent of national income in 1995-96 as Britain emerged from the recession of the early 1990s. According to the latest data from the Office of National Statistics, tax receipts from April to August were £205.4bn.
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