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U.k. Has Record July Deficit As Recession Curbs Taxes


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HOLA441

http://www.bloomberg.com/apps/news?pid=206...id=ajoxWBXshers

U.K. Has Record July Deficit as Recession Curbs Taxes

Aug. 20 (Bloomberg) -- Britain had an 8 billion-pound ($13.2 billion) budget deficit in July, the largest for the month since records began in 1993, as the recession ravaged tax revenue and the cost of unemployment benefits surged.

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British government bonds and the pound fell after the report. The benchmark 10-year gilt’s yield rose 2 basis points to 3.604 percent. The pound, which traded as high as $1.6608 earlier in the day, had slumped to $1.6520 at 11 a.m. in London.

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Last month’s deficit far exceeded the 600 million-pound shortfall that was the median of 16 forecasts in a Bloomberg survey.

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Government receipts dropped 15 percent in July from a year earlier, the steepest decline since records began in 1998. Cash receipts from corporate profits fell 38 percent and value-added tax declined 34 percent. Income tax payments dropped 15 percent...

Spending rose 7.5 percent, with net spending on social benefits jumping 10 percent after unemployment climbed to a 14- year high. Net investment rose 10 percent to 2.9 billion pounds as the government brought forward projects to help the economy.

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http://www.statistics.gov.uk/cci/nugget.asp?id=206

Not found the Gilts thread yet! No surprise that the have to expand QE now these other numbers have been released.

:(

Plummeting tax receipts - especially from companies - saw Government borrowing surge to its highest level for the month of July since records began.
http://www.telegraph.co.uk/finance/economi...ts-plummet.html Edited by Ash4781
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"This is worse than bad," said Alan Clarke

What does that mean? It's worse than bad but not very bad?

Britain had an 8 billion-pound ($13.2 billion) budget deficit in July, the largest for the month since records began in 1993, as the recession ravaged tax revenue and the cost of unemployment benefits surged. The shortfall compared with a surplus of 5.2 billion pounds a year earlier, the Office for National Statistics said in London today. It came in a month when the Treasury usually gets a boost from quarterly tax payments. Britain last had a deficit in July in 1996.

254% worse?

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