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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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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Pull the other leg, Mr Chancellor

Yesterday saw the arrival of the Budget we had all been waiting for. How was Alistair Darling, the chancellor, going to deal with an economy which is in severe recession and contend with government finances which have been so severely overstretched?   There was a bit of tinkering here and there with slight increases in taxes on alcohol, tobacco and … Continue reading

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The VAT cut is working

The temporary cut in VAT from 17.5% to 15%, put in place by the Chancellor on 1st December 2008, “is working”, according to a report by The Centre for Economics and Business Research (CEBR). The CEBR had initially called for a 5% reduction in VAT.   Many have argued that because the cut was so small it would have little … Continue reading

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