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Public Borrowing Figure Blow For Government

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http://www.independent.co.uk/news/uk/politics/public-borrowing-figure-blow-for-government-2288307.html

The Government's deficit reduction plans were dealt a blow today after official figures revealed that last month's borrowing figures were the highest ever recorded for the month of April.

Public borrowing, excluding financial interventions such as bank bail-outs, hit £10 billion, compared with £7.3 billion the previous year, said the Office for National Statistics (ONS).

The figure, which is higher than City expectations of £6.5 billion, will cast doubt on whether the Government can meet its target of bringing the deficit down to £122 billion this financial year.

The ONS said tax receipts fell year on year, which had been boosted to the tune of £3.5 billion a year earlier by the tax on bankers' bonuses.

ONS release:

http://www.statistics.gov.uk/pdfdir/psf0511.pdf

The figure for last year / month was revised down £2bn~.

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Labour are right.. they're cutting spending too fast and too hard <_<

I see net debt at 910bn is getting near to the the magical number

Net debt as a % of GDP has gone up 7% in a year, crikey.

Edited by exiges

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So they deficit reduction plan is no where near big enough. Will we now see the bind vigilantes return and demand the UK pay for for it's debt?

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Labour are right.. they're cutting spending too fast and too hard <_<

I see net debt at 910bn is getting near to the the magical number

Net debt as a % of GDP has gone up 7% in a year, crikey.

Id like to hear red eds thoughts on this..

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more pain to come it seems. Unless the Government can stimulate private sector growth and raise the tax revenue...........................

................. :lol::lol::lol::lol:

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So they deficit reduction plan is no where near big enough. Will we now see the bind vigilantes return and demand the UK pay for for it's debt?

the UK has more long term debt than anywhere thanks to Mervs swift actions before the crisis so there is little chance of default before that expires around 2017, but cutting isnt going to work any more than not cutting (although it makes more sense to at least try to see if they can take advantage of the one off last chance saloon that Merv provided). The tax take will fall in line with the cuts, private business will not replace public deficit reduction because of the monstrous levels of private debt which is why inflation wont work either. Ultimately a default is pretty much as unavoidable as the bubble and peak debt itself is

Edited by georgia o'keeffe

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When you say revised down, can u provide the before and after figures as we're dealing with negative numbers!

I presume you mean we borrowed more than we first thought!

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How about they stop blowing the crap out of Libya with money they don't have, that might save a bob or two.

That way lies pain, too. Our economy relies on lots of "defence" exports, which is precisely why we've needed another trade fairwar every few years since the end of the Cold War.

Withdraw too quickly from bombing the world and you get ... Russia in the 1990s.

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Labour are right.. they're cutting spending too fast and too hard <_<

I see net debt at 910bn is getting near to the the magical number

Net debt as a % of GDP has gone up 7% in a year, crikey.

But, but, but.... growth was going to solve everything. Along with 3% natural wastage and 3% retirement per year. Surely there must be some mistake. The BOE's fan charts were all in range. I just don't understand why the deficit isn't getting smaller.

Who'd have thought that raising taxes, crashing interest rates and not actually cutting anything would have a negative effect on the economy?

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How bad will it get?

Talk to those holding property, bonds, stocks and shares, or anything denominated in sterling for that matter in about five years.

I see it as a race to the bottom and there's no real way of knowing whether Sterling will be the shit that hits the fan hardest. Would you rather be in Euros, Greenbacks, the Yen or Sterling?

That's a genuine question by the way. :)

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Don't forget that this needs to be put into the context of the imminent sterling debasement.

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When you say revised down, can u provide the before and after figures as we're dealing with negative numbers!

I presume you mean we borrowed more than we first thought!

Yes, that needs to be qualified, what was the change in the March figures?

And these figures are disastrous, borrowing is up on last year for the first month, which means all other months need a smaller deficit or a bigger surplus than planned to make up for it. I dont think that is likely.

Luckily for the government, the markets believe the spin, and interest rates on government bonds are at rock bottom. Well that gives them time, but no solution. The solution is to reduce the deficit, and free up the private sector by reducing the tax burden on the private sector. To do that, public sector cuts need to be savage.

And I just dont see how a government that has chickened out of withdrawing SMI and putting in place a Housing Benefit cap, even though that cap is about twice as high as it should be, is going to implement savage cuts.

I wouldnt want any government bonds in my pension fund.

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the UK has more long term debt than anywhere thanks to Mervs swift actions before the crisis so there is little chance of default before that expires around 2017, but cutting isnt going to work any more than not cutting (although it makes more sense to at least try to see if they can take advantage of the one off last chance saloon that Merv provided). The tax take will fall in line with the cuts, private business will not replace public deficit reduction because of the monstrous levels of private debt which is why inflation wont work either. Ultimately a default is pretty much as unavoidable as the bubble and peak debt itself is

About are only saving grace is the long term debt, that's where Merv actually earned his pension. He made the least worst decision given the options available (including the political ones)

That's why Belgium is in such deep sh¡t. They're carrying an awful lot of short term debt, which they won't be able to roll over.

(There was a great chart which has been posted on here a few time showing the length of debt issue per country, so far it's been an extremely accurate indicator for which countrys are most likely to default.-can anyone post a copy?)

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Yes, that needs to be qualified, what was the change in the March figures?

And these figures are disastrous, borrowing is up on last year for the first month, which means all other months need a smaller deficit or a bigger surplus than planned to make up for it. I dont think that is likely.

Luckily for the government, the markets believe the spin, and interest rates on government bonds are at rock bottom. Well that gives them time, but no solution. The solution is to reduce the deficit, and free up the private sector by reducing the tax burden on the private sector. To do that, public sector cuts need to be savage.

And I just dont see how a government that has chickened out of withdrawing SMI and putting in place a Housing Benefit cap, even though that cap is about twice as high as it should be, is going to implement savage cuts.

I wouldnt want any government bonds in my pension fund.

if things get that bad you are unlikely to be offered the choice

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if things get that bad you are unlikely to be offered the choice

Just in case you didnt know, you arent for most defined benefit schemes. Buying long term government bonds is mandated.

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About are only saving grace is the long term debt, that's where Merv actually earned his pension. He made the least worst decision given the options available (including the political ones)

That's why Belgium is in such deep sh¡t. They're carrying an awful lot of short term debt, which they won't be able to roll over.

(There was a great chart which has been posted on here a few time showing the length of debt issue per country, so far it's been an extremely accurate indicator for which countrys are most likely to default.-can anyone post a copy?)

Jack,

it is the Treasury that makes borrowing decisions, including the length of time bonds are issued for, not the Bank of England.

They have used long term borrowing because pension funds wanted them as a way of matching liabilities to assets. With people living a long time in retirement, the long bond appeared to have been the solution to their problem, and the government was only too happy to oblige.

And it is a solution for the pension funds. Their liabilities dont extend to protecting their pensioners from inflation over 2.5% I think it is, so if there is a blast of inflation, the pensioner is left carrying the can.

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Just in case you didnt know, you arent for most defined benefit schemes. Buying long term government bonds is mandated.

and it can be mandated for any private pensions within the jurisdiction, simply by taxing at a punitive rate any private pension not holding them

Edited by georgia o'keeffe

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  • 284 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%



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