• From The BBC:

    Total outstanding government debt in the UK has risen to a record £799bn, or 56.6% of UK GDP – the highest since records began in 1974.New borrowing in June was £13bn, almost twice as much as a year ago, the Office for National Statistics said, after the downturn shrank tax receipts. The figures also reflect the cost of bank bail-outs and higher spending on social security benefits. One economist described the state of the public finances as “dire”. “The figures are modestly better than expected. It doesn’t take away from the fact that the state of public finances is dire and that a considerable degree of fiscal tightening will be required,” said Philip Shaw, chief economist at Investec.
    “The figures are volatile on a month-on-month basis. The size of the shortfall and volatility mean there is little to celebrate.” Analysts had forecast borrowing of £15.5bn in June. The UK is on track to meet Chancellor Alistair Darling’s forecast of £175bn of borrowing this fi…

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    Posted by Jon @ 11:58 am

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