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December 18, 2009    

UK’s public sector borrowing continues to soar

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by Kay Murchie

The Office for National Statistics (ONS) has today revealed that the UK’s public sector net borrowing hit a record high of £20.3 billion in November.

While the figure was less than the £23 billion analysts had expected, it was still the highest for any month since the ONS began gathering data over 16 years ago.

Overall debt now stands at £844.5 billion - the equivalent of 60.2% of GDP. In May, credit rating agency, Standard and Poor’s, said the UK’s debt burden may reach 100% of GDP.

In comparison, in November 2008, public borrowing was £15.5 billion, while net debt stood at £706.2 billion - the equivalent of 49.6% of GDP.

Commenting on the figures, James Knightley at ING, said: “The UK’s public finances have deteriorated further in November, but not as badly as the market had feared.”

“Certainly the better labour market data is helping government finances and a return to growth will further help moderate the rate of deterioration,” he added.

Meanwhile, the overall level of public borrowing for this financial year is on target to hit the £178 billion forecast by the Treasury.

The recession has meant tax revenues have been hit, as well as a severe hike in unemployment benefits.

Official figures last week showed that UK unemployment rose by 21,000 in the three months to October to 2.491 million, taking the unemployment rate to 7.9% - a 13-year high.

However, the increase was slower than expected and was the smallest quarterly rise since March-May 2008

The number of Britons claiming jobseeker’s allowance (JSA) fell for the first time since February 2008.

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1 Comment »

  1. What about the Billion pound NHS computer project that could be scrapped?

    There appears to be no public accountability for this use of such large sums of money. We the Taxpayers need to have say when large amounts of ‘Public Money’ is used as we are the investors by means of Taxation and revenues received from us.

    Even the Bankers who are a business and could have claimed on their insurers not us. When I questioned a Banker on this as to them using there own insurers the reply was. “ So long as Government wish to fund us, we will continue taking the money”.

    We need a 50% Cut from the top down in the army of Jobs for the Boy’s Civil Servants.
    As it is Labour continue to cripple the counties chances of economic recovery by excessive high Taxes and drafting new laws to criminalize to Public just to gain revenues. Even the Police force act more like revenue-men than Policemen.

    Signed Carl Barron Chairman of agpcuk

    Comment by Carl Barron — December 18, 2009 @ 5:57 pm

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Tags: , , , , , public debt, , unemployment benefits