Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

U K Posts Largest Budget Surplus Ever (Since 2008)

Recommended Posts

http://www.bloomberg.com/news/2011-02-22/u-k-posts-biggest-budget-surplus-since-july-2008-on-taxes-1-.html

U.K. Posts Biggest Budget Surplus Since July 2008 on Taxes
By Scott "Scotty" Hamilton - Feb 22, 2011 9:42 AM GMT
Britain posted the biggest budget surplus in January since July 2008 as government revenue surged in the biggest tax-collection month of the year.
Revenue exceeded spending by 3.74 billion pounds ($6 billion), compared with a deficit of 1.27 billion pounds a year earlier, the Office for National Statistics said in London today. The median of 13 forecasts in a Bloomberg survey was for a surplus of 100 million pounds. The surplus including government support for banks was 5.25 billion pounds.
Chancellor of the Exchequer George Osborne is pledging to stick to his deficit-cutting program to tackle a shortfall that’s set to reach 10 percent of economic output this year. Osborne today received a boost from his U.S. counterpart, Timothy F. Geithner, who said the cuts pose little risk to the recovery.
“Taken at face value this is good news,” Philip Shaw, an economist at Investec Securities in London, said in a telephone interview. “The government is better than on track for its borrowing plans, but it’s a long battle on the public finances and it’s not been won yet.”
The pound rose against the dollar after the report and was trading at $1.6171, down 0.4 percent on the day, as of 9:37 a.m. in London.

:blink:

Share this post


Link to post
Share on other sites

Britain posted the biggest budget surplus in January since July 2008 as government revenue surged in the biggest tax-collection month of the year.

Either I'm very confused, or the only really surprising thing about this news is that there has ever been a January where the spending was greater than the revenue... in other news, Christmas tree salesmen say December has been their best month all year...

Share this post


Link to post
Share on other sites

Either I'm very confused, or the only really surprising thing about this news is that there has ever been a January where the spending was greater than the revenue... in other news, Christmas tree salesmen say December has been their best month all year...

Last January we had a government pursuing a scorched earth policy worthy of 1812 ...

Share this post


Link to post
Share on other sites

Either I'm very confused, or the only really surprising thing about this news is that there has ever been a January where the spending was greater than the revenue... in other news, Christmas tree salesmen say December has been their best month all year...

January is always a good month because of Corporation tax ( a lot of companies year ends are 31 March do their tax is due 1 Jan) and Self employed tax is due the end of Jan. Last year there were various time to pay measures in place whereby anyone who could use a phone could basically get three months to pay their taxes. This year's much tighter, there's higher penalites for not paying on time.

Share this post


Link to post
Share on other sites

http://labour-uncut.co.uk/2011/02/22/how-should-the-nation-spend-its-windfall-the-obr-incompetence-bonus/

The above is a post from labour uncut, run by Brown henchman Tom Watson of curry house plot fame.

You can not believe it, the nation had better tax receipts than forecast and maybe the borrowing for the full financial year will be less than the 146billion planned and what is the first thought in there minds.

HOW CAN WE SPEND THE WINDFALL?

What do they not understand about having to borrow 132 billion is just as bad as having to borrow 146 billion. In the doo-doo is still in the doo-doo.

Thank god we are rid of them.

Share this post


Link to post
Share on other sites

If true might go some of the way to counteracting the all-time record monthly deficits recorded in August and November 2010 then.

Anyway, aside from being estimates it would sound to be like some creative accounting. Stall some outgoings until later in the year to improve the net budget result for January and claim the cuts are a success as a result and hope no one notices the growing deficits later in the year.

Share this post


Link to post
Share on other sites

Last January we had a government pursuing a scorched earth policy worthy of 1812 ...

very good point....us goldfish cant remember what happened 10 minutes ago..

Share this post


Link to post
Share on other sites

I have a lot more faith in Cameron/Osborne than I did in Blair/Brown and Brown/Darling.

SO do I, but as faith in the Nulab clowns was zero for me, thats not hard.

Id give the new lot 1/50

Share this post


Link to post
Share on other sites
One key measure of the public sector fiscal position is public sector net borrowing. This is derived by subtracting the public sector current budget from public sector net investment.

The public sector current budget is calculated by subtracting current expenditure from current receipts. In January 2011, there was net borrowing (excluding financial interventions) of -£3.7 billion, which compares with borrowing of £1.3 billion in January 2010.

Public sector net borrowing (excluding financial interventions) was £113.0 billion in the year to date for 2010/11, down from £127.2 billion in the same period last year. The OBR’s Economic and Fiscal Outlook (November 2010) forecast for 2010/11 is net borrowing of £149 billion.

Public sector net debt (excluding financial interventions) was £867.2 billion (equivalent to 57.6 per cent of GDP) at the end of January 2011. This compares to £720.9 billion (50.4 per cent of GDP) as at the end of January 2010.

The unadjusted measure of public sector net debt expressed as a percentage of gross domestic product (GDP), was 149.2 per cent at the end of January 2011 compared with 153.2 per cent at end of January 2010. Net debt was £2,244.2 billion at the end of January compared with £2,191.2 billion a year earlier.

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

Not the most amazing news, Feburary you get -6.6Bn 2005, -12.6Bn 2006,-10.3Bn 2007, -14.1Bn 2008, -3.3Bn 2009, +4.3Bn 2010, -3.7Bn 2011

It's the month that is usually the only surplus one of the year, except in 2010 when we had to borrow 4.3Bn.

Edited by northwestsmith2

Share this post


Link to post
Share on other sites

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

Not the most amazing news, Feburary you get -6.6Bn 2005, -12.6Bn 2006,-10.3Bn 2007, -14.1Bn 2008, -3.3Bn 2009, +4.3Bn 2010, -3.7Bn 2011

It's the month that is usually the only surplus one of the year, except in 2010 when we had to borrow 4.3Bn.

These numbers are very interesting,

If you really want to be shocked read Flanders blog, basically she says that because tax receipts are up, the economy must be growing and we are well on the way to recovery.

The trouble is, hardly any real cuts have happened yet and once they start the impact will have a 6 month lag. the question is will they cost more money than they save (probably not) but will they save as much as is expected?

If you look at the gradient of that deficit graph it looks identical to last year. If you include 'financial interventions' its a basket case, still we could sell all our shares in the banks at anytime we like couldn't we?

Share this post


Link to post
Share on other sites

Clear data showing the strength of the recovery.

If we have a windfall like January for every month going forward and don't increase the net national debt, excluding bank bailouts, public pensions, PFI etc, we could pay it all off in 20 years.

Edited by Take Me Back To London!

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.