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

Posted by Nigel Tree | Leave a comment

Work till you drop

The government has just started a consultation process with the view of scrapping the fixed retirement age from October 2011. This would mean that employers would no longer be able to ‘force’ workers to retire at age 65, as they can, and usually do, at the moment. The bad news is that you have to have a job in the … Continue reading

Posted by Nigel Tree | Leave a comment

What is the matter with them?

I have just recovered from the Budget this week, as it was even worse than I had anticipated. I keep writing in my blogs that extreme austerity packages are going to damage the economy but George Osborne is just not listening. What’s the point of me writing all this if he is not taking a blind bit of notice. I … Continue reading

Posted by Nigel Tree | Leave a comment

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

Posted by Nigel Tree | Leave a comment

Mixed messages on unemployment

The unemployment rate for the three months to April 2010 was 7.9% which was an increase of 0.1%. There was an increase in the number unemployed of 23,000 to give a total of 2.47 million out of work. This is a bleak figure which looks set to become even bleaker. Particularly so, given the fact that there are 5.2 unemployed … Continue reading

Posted by Nigel Tree | Leave a comment

UK Borrowing: Worst January figure ever

Public sector net borrowing was £4.34bn in January compared with a repayment of £5.3bn in the same month last year. A poll of City analysts taken by Reuters had forecast a repayment in January of £2.8bn. In reality, we ended up with the worst figure for any January since such records began in 1993. January is usually a bumper month … Continue reading

Posted by Nigel Tree | Leave a comment

Fiscal tightening needs to be increased

The Institute for Fiscal Studies, which has no political alignment, has said that the government would have to find another £13bn during the next parliament, in order to put the public finances back on an even keel.   In his pre-Budget report, the Chancellor, Alistair Darling, outlined measures for a £57bn fiscal tightening which is about 4.1% of national income, … Continue reading

Posted by Nigel Tree | Leave a comment

Shock cut in bingo duty

A reduction in bingo duty from 25% to 20% was the centrepiece of yesterday’s Pre Election Manifesto – sorry, Pre Budget Report – presented by chancellor, Alistair Darling.   Whilst it’s true that the chancellor had all the room to manoeuvre of a man holding a wake in a telephone box, he actually played safe by doing ….well…..doing virtually nothing. … Continue reading

Posted by Nigel Tree | Leave a comment

Deeper in the red

The good news is that the government is painting the town red. The bad news is that it is with the red ink they are using to write the government’s borrowing needs – needs that we are all going to have to pay for, one way or another, in the years to come.   We have already gone from bad … Continue reading

Posted by Nigel Tree | Leave a comment

Outlook for public finances is “alarming”

In a news release issued this morning by the Confederation of British Industry (CBI) the organisation submitted its budget proposals to the Chancellor. The CBI warned that “the alarming state of the public finances rules out the option of a further significant fiscal stimulus.”   John Cridland, CBI Deputy-Director General said: “The public finances have been battered by the cost … Continue reading

Posted by Nigel Tree | Leave a comment