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Uk Government Borrowing Falls In June On Record Tax Haul

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http://www.bbc.co.uk/news/business-33605681

UK government borrowing fell to £9.4bn in June, down £0.8bn from a year earlier, as income and corporation tax receipts rose to record levels, official figures show.

The Office for National Statistics (ONS) said income tax receipts rose by £0.3bn to £11.5bn, a monthly record.

Corporation tax was up nearly 14% at £1.7bn, marking another record high.

In the financial year so far. public sector net borrowing has fallen by £6.1bn to £25.1bn.

In the summer Budget earlier this month, the Office for Budget Responsibility (OBR) forecast public borrowing would be £69.5bn this year.

Success, borrowing down by £0.8bn for this month. A staggering achievement...

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So we are only another 10 billion in debt in one month. About £150 for every man, woman, and child in the country in one month; I can't wait to see how this all ends.

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So we are only another 10 billion in debt in one month. About £150 for every man, woman, and child in the country in one month; I can't wait to see how this all ends.

I think your forum name sums it up! :P

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So the headline should have read something like "Even more billions of debt needed despite record levels of tax".

So in actual fact it's a double whammy for the UK but the bbc tries to make it sound like good news.

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£9.4Bn * 12 = £112.8Bn per year = £564Bn over a 5 year government term.

So - yes, "good news" BBC if you think the national debt passing £2,000,000,000,000 by the next election is "good news". :wacko:

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So we are only another 10 billion in debt in one month. About £150 for every man, woman, and child in the country in one month; I can't wait to see how this all ends.

Also not including unfunded liabilities and bank bailouts. That's what you get with no manufacturing base and low wages.

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Also not including unfunded liabilities and bank bailouts. That's what you get with no manufacturing base and low wages.

Yes but we have the best housing ponzi that a mountain of debt could buy so what's not to like. Manufacturing is so last century compared to BTL. Edited by stormymonday_2011

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wanted to see how much of this £20bn expenses is interest charges.

Can we find a way to pay this off as quickly?

The treasury could tell the BoE to send them the Gilts they bought with QE, and then rip them up. I think that accounts for about 25% of UK public sector debt. It's something of a Weimar solution though.....

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wanted to see how much of this £20bn expenses is interest charges.

Can we find a way to pay this off as quickly?

£1Bn a week according to this >

http://www.telegraph.co.uk/finance/economics/10849333/Interest-bill-on-UKs-1.27-trillion-debt-to-hit-1bn-a-week.html

£1Bn a week would work out to be £15.38 per man, woman and child in the UK (based on 65M population) - that's the WEEKLY interest we - as a nation - pay.

...but that was back in May 2014.

You could probably add another £150M a week or so to it.

Sure is expensive running this country - but hey, at least we're.....yawn....in a recovery since 2012.

Edited by canbuywontbuy

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Oh, and if interest rates stay at unprecedented lows, and we get to a point where we actually stop borrowing - guess what? The UK will be paying £1Bn a week to its creditors.....forever and ever and ever and ever....every single week. You think rent is dead money? Try £1Bn a week in interest repayments as dead money.

Edited by canbuywontbuy

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Of course, it could get worse - borrowing rate could go up, or we could (I know this is crazy) borrow even more money, upping the £1Bn a week to £1.5Bn......£2Bn.....

But, hey, we're in a recovery.

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According to the Torygraph's own debt clock, we're at £1,505,000,000,000 in debt - based on their own calculations from the May 2014 article, that makes us paying back £1,158,461,538 and 46p per week in interest right now in 2015 - or just over £60Bn a year (in INTEREST only).

Compare to 2012:-

https://en.wikipedia.org/wiki/United_Kingdom_national_debt#Cost_of_servicing_the_debt

Distinct from both the national debt and the PSNCR is the interest that the Government must pay to service the existing national debt. In 2012, the annual cost of servicing the public debt amounted to around £43bn, or roughly 3% of GDP

So from £43Bn a year in interest in 2012 to over £60Bn a year in 2015.

Sinking ship.

Edited by canbuywontbuy

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The treasury could tell the BoE to send them the Gilts they bought with QE, and then rip them up. I think that accounts for about 25% of UK public sector debt. It's something of a Weimar solution though.....

There goes your pension.

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http://www.theguardian.com/business/live/2015/dec/22/markets-await-uk-public-finances-as-oil-edges-higher-live

George Osborne’s plan to repair Britain’s public finances has received a fresh setback from official figures showing that the budget deficit in November was 10% higher than in the same month in 2014, writes our economics editor Larry Elliott.

The Office for National Statistics said the gap between spending and revenues last month was £14.2bn - an increase of £1.3bn on November 2014.
Officials said that one reason for the deterioration was that last November had seen the
, which had not been repeated in November 2015.
Even so, the figures came as an unwelcome shock to the City, which had been forecasting a drop in net borrowing – the government’s preferred measure of the deficit – to £11.8bn.
Shares fell after the ONS released the data amid fears that the chancellor would now struggle to meet his deficit reduction targets for 2015-16 and to move the public finances into surplus by the end of the parliament.
Borrowing during the first eight months of 2015-16 has been £66.9bn, only £2bn short of the total expected by the
http://budgetresponsibility.org.uk/economic-fiscal-outlook-november-2015/' rel="external nofollow">
for the whole of the financial year.
Analysts said it would require a big improvement in the remaining four months of the year to hit the OBR forecast. In the same months of 2014-15, the government borrowed £16bn.

Can't find the other thread on HPC on this.

Once more George is a success.

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