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Danthus

Danthus

Danthus

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Looking good for Osborne.

Debt up, borrowing up, deficit up.

http://www.theguardian.com/business...fter-surprise-fall-in-tax-receipts?CMP=twt_gu

A fall in income tax receipts sent Britain’s deficit spiralling to £12.1bn in August, the widest shortfall in government funding since 2012.

The Office for National Statistics said a dip in corporation tax receipts was also to blame for the worsening situation, which will put pressure on George Osborne ahead of tough expenditure decisions due in November when Whitehall agrees its five-year spending targets.

Dampening the euphoria last month about the first surplus for three years, the deficit represented a big jump on last year’s figure of £10.7bn and much higher than the £9.2bn expected by City analysts.


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A fall in self-assessment receipts was behind much of the fall in the Treasury’s tax income after a bumper month of self-employed payments in July.

The ONS said this changing pattern of payments by the self-employed was unexpected as August usually enjoys a large spillover of tax receipts from the previous month.

This year, few extra payments were made in August but the combined receipts for July and August were the highest on record for any July-August period.

Government department spending also rose in August compared with a year earlier, bucking the more usual trend of spending restraint. The combination of higher spending and lower tax receipts meant the cumulative deficit of £38.4bn this financial year is only marginally down on the £42.8bn achieved at the same.
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http://www.bbc.co.uk/news/business-34323280

Government borrowing was higher than expected in August, rising slightly from a year earlier.

Public sector net borrowing excluding banks was £12.1bn last month, which was £1.4bn higher than August 2014, the Office for National Statistics said.
Analysts had expected August's borrowing figure to fall to about £9bn.

However, borrowing in the first five months of the financial year was £38.4bn, which is £4.4bn below the level at the same point last year.

Total debt was £1,506bn at the end of August - up £68.9bn on a year earlier.
The ONS blamed the rise in borrowing during August on a fall in income tax paid during the month, with fewer of the payments that were due in July being paid late than in previous years.

The corporation tax take in August was also down on the previous year.
But the ONS stressed that the monthly figures are volatile and that the figures for the financial year so far may provide a better picture.
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Isn't the OP a Labour supporter? If so, I fail to see what his criticism is. I thought they wanted to see more borrowing and less austerity.

As it happens, the figures for a single month are of little relevance to the overall picture. Our finances are still moving in the right direction overall. If August is the start of a trend, then we have something to worry about.
 
Can spin it anyway you want:

However, borrowing in the first five months of the financial year was £38.4bn, which is £4.4bn below the level at the same point last year.
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So, borrowing is actually down...
 
Is the deficit really relevant, I mean you have external and internal debt. The deficit measures the internal debt however the government just keeps borrowing and adds it to the external debt[which we never hear about]. So even though they can say the deficit is going down, or it seems here not, then the external debt is still rising.

Truth is that you'll hear Cameron say the deficit is going down however the Tories have borrowed way more then Labour did. Maybe some of that borrowing has to do with the financial crisis and QE, I am not sure however they have borrowed many hundreds of billions over the last few years.
 
OldCoals said:
But would he do it while saying the opposite?
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yes, he is just another career politician. He'll be bowing to the Queen soon when he accepts his place in the Privy council and so his shameful spiral down the hypocrisy highway begins...................
 
wildman said:
yes, he is just another career politician. He'll be bowing to the Queen soon when he accepts his place in the Privy council and so his shameful spiral down the hypocrisy highway begins...................
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Corbyn is opening about borrowing and spending. :confused:
 
jsmoke said:
Truth is that you'll hear Cameron say the deficit is going down however the Tories have borrowed way more then Labour did. Maybe some of that borrowing has to do with the financial crisis and QE, I am not sure however they have borrowed many hundreds of billions over the last few years.
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The reason the coalition/Conservatives are now borrowing more than Labour ever did is because of a lack of economic growth. It's simple economics.

Labour ran a small surplus for most of the 13 years in power, then towards the end switched to a reasonable deficit which was more than made up by the economic growth we experienced. Then came the financial crisis, and Labour bailed out the banks which meant that not only was the deficit going to increase (because without growth, it isn't compensated for), but the total debt was now greater too. This also wasn't helped by a variety of PFI and other schemes that were setup in a way which meant that borrowing would increase in the short term (increasing the deficit further) in order to pay them off.

The problem I have with the Conservatives is that they don't properly explain their economic policies and viewpoints. They harp on about the economy as if it's a household budget and it isn't, at all, in any way. They should aim to bring the deficit down to a reasonable level whilst at the same time prioritising spending (borrowing) that helps increase economic growth. Aiming for a surplus whilst growth is relatively low is a nonsense.
 
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