UK Government Debt Reaches Same Size as Economy

After another £35.5 billion Sunak splurge in June, the UK’s debt has – not unexpectedly – finally reached the same size as the UK’s whole economy, at 99.6% of GDP. The highest debt to GDP ratio since 1961…

The UK’s debt now stands at £1.98 trillion, after figures show borrowing in the first quarter of the financial year was more than double the £55.4 billion seen in the whole of the previous year. The only tiny silver lining is that borrowing in June was lower than expected by most economists, and £10 billion less than May…

mdi-timer 21 July 2020 @ 10:00 21 Jul 2020 @ 10:00 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
UK Debt Passes 100% of GDP for First Time Since 1963

The dire state of the UK’s public finance has been hammered home today, as new ONS figures show the UK’s debt to GDP ratio surpassing 100% of GDP for the first time in 57 years. A £55.2 billion borrowing surge in May – roughly nine times more than was borrowed in May 2019 – is the highest figure in any month on record. Total borrowing for the financial year is running at £87 billion more than last year…

There are glimmers of light at the end of the tunnel however. Retail is beginning to bounce back, with sales rising by 12%, with 33.4% of total sales being made online – the highest proportion ever. Fuel sales have increased 49% on April’s plummet, suggesting an increase in those commuting or taking up the government’s permission of being able to travel further afield for exercise.


The UK is only one month away from hitting a debt of £2 trillion…

mdi-timer 19 June 2020 @ 08:38 19 Jun 2020 @ 08:38 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Government Borrowing Smashes All Forecasts

The newly-released April borrowing figures from the ONS show Government borrowing rose by £62.1 billion – double the £30.7 billion economists had predicted for the month and now means the government has already borrowed what it expected to borrow for the year. The highest monthly figure ever recorded…

A fall in consumer spending meant a plummet in VAT receipts, comparable to the amount seen before the Government implemented the 20% rate

The massive spike in borrowing takes UK debt to £1.88 trillion – 97.7% of GDP. The highest since the 1950s…

mdi-timer 22 May 2020 @ 08:47 22 May 2020 @ 08:47 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Sunak warns of a “severe recession, the likes of which we haven’t seen”.
mdi-timer 19 May 2020 @ 15:14 19 May 2020 @ 15:14 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
UK Economy Only Contracts by 2%

New figures published by the ONS this morning show the UK economy shrank by 2% in the first quarter of 2020, the biggest decline since Q4 of 2008, though less than the 2.5% experts had predicted; and March’s -5.8% being smaller than the expected 7.9% drop. Compared internationally, the UK holds up quite well. Though all countries will be bracing even harder for April’s figures…

The figures coincide with this morning’s Telegraph splash of internal Treasury estimates forecasting a £337 billion budget deficit by the end of this year – £282 billion higher than expected in the March Budget. In the base case scenario, the Treasury is advising Rishi Sunak he will have to increase taxes or cut spending to raise between £25–£30 billion a year.

In typical Treasury fashion, the Chancellor has been presented with options for raising taxes; with the leaked paper advising reliance on increasing income tax, National Insurance, VAT or corporation tax, or reform of pensions tax. Will Rishi want to go down in history as the top Tory tax-hiker?

mdi-timer 13 May 2020 @ 08:47 13 May 2020 @ 08:47 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Osborne Denies Need for Austerity 2.0

A familiar tanned face returned to Question Time last night, with George Osborne making his first appearance on the show since before the 2010 election, when the panel were discussing how to respond to a global economic crisis. How times change…

Asked whether, in light of Coronavirus, we’re heading for “austerity Mark II”, the former Chancellor said

I don’t necessarily think it’ll be the same, I think hopefully the recovery from this – although the drop is deeper because we’ve shut down the economy – I think the recovery will be more quick, it will take place more quickly… but the basic truth is sadly our country, because of this virus, is not as rich as we thought it would be.”

He also prophesied that the next election will once again be fought on the economy, “the economy has moved back centre-stage in British politics”. Not usually good news for Labour…

mdi-timer 1 May 2020 @ 08:47 1 May 2020 @ 08:47 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
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