Income tax receipts in particular have been weaker than expected.
Income tax receipts in particular have been weaker than expected
The chancellor George Osborne borrowed £13.3 billion in May, higher than a year earlier when the government borrowed £12.6 billion, according to new figures from the Office for National Statistics (ONS).
Income tax receipts in particular have been weaker than expected.
The latest figures come just two months into the fiscal year, but imply a poor start to Osborne’s yearly plan. At the time of the Budget in March, the Office for Budget Responsibility (OBR) predicted full-year borrowing would fall from £107.8bn last year to £95.5bn this year.
Commenting on the figures, shadow chief secretary to the Treasury Chris Lesley said the chancellor was set to “break his promise to balance the books by next year”:
“Not only is George Osborne set to break his promise to balance the books by next year, but so far this year he is borrowing more than the same period last year.
“Borrowing is now expected to be almost £190bn more than planned under this government. This is the cost of three damaging years of flatlining and falling living standards we have seen since the election.
“Labour will balance the books and get the national debt falling as soon as possible in the next parliament, but we will do so in a fairer way. And we will act to secure a strong and balanced recovery that delivers rising living standards for the many, not just a few at the top.”
To reach hundreds of thousands of new readers and to make the biggest impact we can in the next general election, we need to grow our donor base substantially.
That's why in 2024, we are seeking to generate 150 additional regular donors to support Left Foot Forward's work.
We still need another 124 people to donate to hit the target. You can help. Donate today.
14 Responses to “New figures: George Osborne borrowing more than expected”
Leon Wolfeson
Well of course, no surprises here – austerity causes austerity. He’ll come up with new cuts (to cause more cuts), out of the hide of the poor and the working economy.
kevin leonard
Income tax receipts in particular have been weaker than expected. OH DEAR 2 million “new jobs created” by this coalition government and yet income tax receipts falling however did that happen?
John
I REALLY don’t trust labour to balance our books either to be fair. Their record has never been exemplary.
But why should it? The government isn’t a credit card, or a housewife (the analogies are worthless). The more it spends the more it (could) stimulate the economy, the more money it gets in taxes etc etc.
Indeed, when Japan and China had NO debt, America bullied them into spending more (governments trade debt after all; it’s a commodity). We need to REDUCE the debt-burden, but I don’t know about eliminating it entirely is possible, or practical.
Leon Wolfeson
You reduce debt when wages are rising and standards of living are at least stable.
Not otherwise.
Even the paper showing 90%+ government debt caused a 1% drop in long-term growth was debunked some time ago.
John
Sure; how to cause wage rises and living standards increases? Investment. How do you ensure that investment benefits all the populace, and not just the ones with the money to invest? Legislation. Which requires enforcement, which requires money.
I know this is all oversimplifications, but it illustrates my point. The government has left this recovery (if thats what you want to call it) alone. It’s happened despite this government, not because of it. Result? The benefits are disproportionately affecting the rich. I don’t blame them; they’re only looking out for themselves same as any of us would.
I WOULD like the government to do it’s job though, and look after the country. I don’t trust labout to do any better.