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News Tag: budget deficit

February 21, 2012

Government on track to beat borrowing target

by Jan Harris
Government on track to beat borrowing target
The government expects to either achieve or exceed its target of borrowing no more than £127bn this year, after recording its biggest surplus for four years in January. In the tax year to date the government has borrowed £93.5bn and in January it made a net repayment of £7.75bn, excluding financial interventions. Although a surplus is traditionally expected in January, because ...

September 1, 2011

BCC revises UK economic growth forecast

by Kay Mitchell
The British Chambers of Commerce (BCC) has today revised its growth prospects for the UK economy. The lobby group is now forecasting growth of just 1.1% this year, down from its 1.3% forecast in June and much lower than the 1.9% it estimated at the start of the year. Meanwhile, it is expecting growth of 2.1% in 2012 – slightly lower than ...

June 8, 2011

Moody’s: UK’s top-notch rating at risk

by Kay Mitchell
Credit rating agency Moody’s has today said Britain’s AAA rating is at risk if growth remains weak and the Government’s budget deficit reduction plans fail to meet target. The announcement sent sterling below €1.12 for the first time in four weeks and also lost ground against the US dollar. Weak economic growth has led many analysts to doubt the Government’s ability to meet ...

May 30, 2011

BCC revises growth prospects for UK economy

by Kay Mitchell
Leading business group, the British Chambers of Commerce (BCC), has downgraded its growth prospects for the UK economy. The BCC now expects the economy to grow by 1.3% this year, slightly lower than a previous forecast of 1.4%. The figures are much lower than the 1.7% expected by the Office of Budget Responsibility but are roughly in line with last week’s forecast ...

May 24, 2011

UK borrowing higher than forecast in April

by Kay Mitchell
The Office for National Statistics (ONS) has today revealed UK public sector borrowing was higher than expected last month, due to a decline in tax receipts. According to the ONS, public sector borrowing was £10 billion in April, compared with £7.3 billion last year. Last year’s figure was boosted by £3.5 billion by the tax on bankers’ bonuses. The figure was ...

April 21, 2011

UK public borrowing less than expected in financial year

by Kay Mitchell
UK public borrowing less than expected in financial year
The Office for National Statistics (ONS) has today revealed UK public sector borrowing came in lower than expected for the fiscal year. According to the ONS, public sector net borrowing (excluding interventions such as bank bail-outs) was £18.6 billion in March, taking the total for the fiscal year 2010-11 to £141.1 billion – less than the £146 billion forecast ...

April 5, 2011

Moody’s downgrades Portuguese Government debt

by Kay Mitchell
Moody's downgrades Portuguese Government debt
Moody's Investors Service has today downgraded Portugal's debt rating, for the second time in less than a month, by one notch to Baa1 from A3. Moody’s also warned that a further downgrade is possible as a bailout becomes increasingly likely for the debt-laden country. It said the downgrade was "driven primarily by increased political, budgetary and economic uncertainty". Last week, the Portuguese Government announced it ...

March 25, 2011

Moody’s – UK’s sovereign rating could be at risk

by Kay Mitchell

March 23, 2011

Budget 2011: Osborne to target growth

by Kay Mitchell
Chancellor George Osborne will deliver his Budget speech today at 1230 GMT, which will be aimed at boosting growth amid the fragile recovery. Mr Osborne is describing it as a "budget for growth" despite the tough austerity measures which threaten to push Britain back into recession, according to some economists. However, many believe the Chancellor will press ahead with his fiscal consolidation plans ...

March 16, 2011

Moody’s cut Portugal sovereign debt rating

by Kay Mitchell
Portugal has had its sovereign debt rating downgraded by Moody’s by two notches to A3 from A1 and kept the rating on a negative outlook - suggesting further downgrades are possible. According to the ratings agency, it might have to downgrade again as a result of high borrowing costs and the difficulty of meeting fiscal targets. The downgrade comes at a time of ...

March 10, 2011

Moody’s downgrades Spain’s debt rating

by Kay Mitchell
Moody’s downgrades Spain's debt rating
Spain has been dealt a further blow today after Moody’s ratings agency cut the country’s debt by one notch to Aa2 from Aa1. In a statement, the agency said: "(Moody's) believes there is a meaningful risk that the eventual cost of the recapitalisation effort could considerably exceed the government's current projections." The downgrade comes just a few days after Moody’s cut Greece’s credit rating ...

March 7, 2011

Moody’s slash Greece’s credit rating further

by Kay Mitchell

February 24, 2011

German posts economic growth of 0.4% in Q4

by Kay Mitchell
Germany has today posted economic growth of 0.4% for the fourth quarter - its seventh consecutive quarter of expansion, the Federal Statistical Office confirmed today. The data confirms an initial estimate published last week. Germany is driving the recovery in the euro zone and export demand helped to bring the economy out of recession in the second quarter of ...

February 14, 2011

US reveals plans to reduce budget deficit

by Kay Mitchell
US President Barack Obama has today unveiled his budget for 2012, aimed at reducing the country’s spiralling deficit. The measures come as many major economies embark on massive spending cuts to trim their deficits. However, like many other economies, tough measures introduced to trim the budget deficit could hamper economic growth and slow the economic recovery. Meanwhile, the US is aiming to shave ...

February 9, 2011

Fed Chairman comments on unemployment and deficit

by Kay Mitchell
Federal Reserve chairman Ben Bernanke has warned that stubbornly high unemployment will remain. Mr Bernanke said the weak labour market means a recovery is not yet “truly established.” His comments come despite the drop in the US unemployment rate last month. Last week, the Labor Department reported the unemployment rate in the US fell from 9.4% in December to 9% in January – ...

February 7, 2011

Lithuania’s entry into euro zone may be delayed

by Kay Mitchell
Lithuania’s President, Dalia Grybauskaite, has today said its entry date for the euro zone may be delayed, citing budget and rising consumer prices for its delay in adopting the single currency. The country’s current target date for euro zone entry is 1 January 2014 but the Baltic nation needs to trim its budget deficit (in accordance with EU rules) to ...

January 28, 2011

Cameron continues to defend “necessary” spending cuts

by Kay Mitchell
At the World Economic Forum in Davos, Switzerland, British Prime Minister David Cameron is expected to say later today that the UK economy is making "progress". His speech will come just days after official figures revealed the UK economy contracted by 0.5% in the October to December period. The figures shocked economists who had expected growth of 0.5% following growth of 0.7% ...

January 24, 2011

Survey reveals VAT hike will hurt SMEs

by Kay Mitchell
A survey by Aldermore, the banking group, has revealed the recent VAT hike will hurt small and medium sized enterprises (SMEs). According to the survey, around 35% of Britain's SMEs said the new rate, from 17.5% to 20%, will put a strain on their cash flow and they will need extra funding to cope with the rise. Aldermore chief executive Philip Monks ...

January 4, 2011

VAT rate rises today to 20%

by Kay Mitchell
The rate of VAT will today rise from 17.5% to 20% as the Government looks to raise billions of pounds in order to trim the UK’s budget deficit. While many are prepared for the increase, retail sales are expected to be hit as consumers are expected to cut back on their spending over the coming months. According to a report by the Centre ...

December 30, 2010

TUC expecting 2011 to be ‘horrible’ year

by Kay Mitchell
Job losses resulting from the Government’s spending cuts is expected to bring widespread industrial action next year, unions have suggested. In his New Year message, Brendan Barber, the TUC’s general secretary, claimed 2011 would be a "horrible" year of cuts and will also be tough for the Government. Unemployment will undoubtedly rise, said the union. Meanwhile, Mark Serwotka, union leader of the ...