Inflation falling, but will it continue?

There was a fall in the Consumer Prices Index (CPI) in August, when it fell to 2.5% from 2.6% in July, according to the Office of National Statistics. At the same time the Retail Prices Index (RPI), which includes housing costs such as rent and mortgages, fell to 2.9% from 3.2% in July. The fall in inflation had been aided … Continue reading

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Government borrowing continues to fall

Government borrowing in December fell by £2.2bn from £15.9bn in December 2010 to £13.7bn. This means that borrowing has now fallen for four consecutive months. The figures for the last financial year together with the current financial year are shown below. These are shown using the so-called “ex-measures” which exclude the temporary effects of financial interventions. Cumulative public sector net … Continue reading

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Government borrowing lower than forecast

Public sector borrowing, excluding the cost of bailing out the banks, was lower than expected over the 2010-11 financial year. In March 2011, the last month of the financial year, net borrowing was £18.6bn, which was down on the £19.8bn borrowed in March 2010. This means total public sector net borrowing was £141.1bn for the year, which compares with £156.5bn … Continue reading

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Improvement in public sector finances

Public sector net borrowing in January 2011, showed a surplus of £3.7 billion compared with a deficit of £1.3 billion in the same month last year. Traditionally the country does show a surplus during January as a result of a lot of income tax and corporation tax bills being paid, but these figures are a vast improvement on last year. … Continue reading

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Very positive forecasts from the OBR

The independent Office for Budget Responsibility (OBR) has just published its latest forecasts. It has raised its estimate for economic growth this year to 1.8%, from a previous figure of 1.2%. But, it believes that growth will be slightly slower over the next two years. It believes that there will be 2.1% growth next year, which is down from the … Continue reading

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The Irish crisis: Is it too late to cancel Christmas?

Thank goodness the UK is not in the eurozone. Ireland is on the verge of another banking crisis due to an ill-advised lending policy, which fuelled a property boom which turned to bust during the recession. Although the Irish government initially said that it did not need any help, the EU has sent the ‘heavies’ in, with the European Central … Continue reading

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Public sector finances still on track?

October’s public borrowing was worse than analysts had been expecting, but it is still possible that the government is on target to produce a budget deficit of £149bn, compared to £155bn in the previous financial year. The borrowing figure for October was £10.3bn, which was up from the £10.1bn of the previous year, but was the first time for five … Continue reading

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Record public sector borrowing in August

Public sector borrowing reached £15.9bn in August, which was a record figure for the month. This compares with £14.1bn in the same month last year. The current budget deficit which shows the difference between government spending and income rose by £2.3bn to £13.3bn. This is not very good news on the surface, and gives added reason to the chancellor to … Continue reading

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Higher than expected public sector net borrowing

Net borrowing in June reached £14.5bn according to figures just published by the ONS. This is slightly lower than the £14.7bn recorded in June 2009 but the markets had been expecting a figure around the £13bn mark. This is partly because tax revenues had been performing well in the previous couple of months. However, the Institute of Fiscal Studies has … Continue reading

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Public sector borrowing fell last month

In the lull before the storm of the next Budget, official figures show that public sector net borrowing fell in May. In fact net borrowing reached £16bn, which was down by 8% on the £17.4bn recorded in May last year. Public sector net debt, shown as a percentage of Gross Domestic Product was 62.2% at the end of May 2010, … Continue reading

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