The below graph shows the additional borrowing in each year compared to the estimates at the Autumn Statement in December.
The below graph shows the additional borrowing in each year compared to the estimates at the Autumn Statement in December.
So for example, in 2012-13 the forecast for government borrowing for 2012-13 is £6bn higher than predicted by the Office for Budget Responsibility (OBR) in December. Likewise the OBR forecast for 2013-14 is £8bn higher than was predicted in December.
Put simply, contrary to the claims of George Osborne and the coalition, a lack of growth is resulting in more borrowing to pay for the costs of economic failure. Borrowing is now forecast to be £245bn more than planned at the time of the spending review – excluding the one off transfers of the Royal Mail Pension Fund and Asset Purchase Facility.
As Alistair Darling put it, “it’s better to borrow to invest than borrow simply because your policies are failing”.
As you’re here, we have something to ask you. What we do here to deliver real news is more important than ever. But there’s a problem: we need readers like you to chip in to help us survive. We deliver progressive, independent media, that challenges the right’s hateful rhetoric. Together we can find the stories that get lost.
We’re not bankrolled by billionaire donors, but rely on readers chipping in whatever they can afford to protect our independence. What we do isn’t free, and we run on a shoestring. Can you help by chipping in as little as £1 a week to help us survive? Whatever you can donate, we’re so grateful - and we will ensure your money goes as far as possible to deliver hard-hitting news.
2 Responses to “Better to borrow to invest than borrow because your policies are failing”
LB
Not if you ‘invest it’ in HS2.
Since ticket sales will never cover the cost of the debt, that means you’re going to have to screw someone in cornwall to pay for the likes of MPs to get home quickly.
That tax hit for years to come screws the economy.
So If Osbourne is going to borrow 114 bn, what does it get invested in?
Where are the 114 bn of cuts going to be made in spending to balance the books so you can invest?
Ah yes, you can’t make the cuts. It’s borrow to spend.
Newsbot9
Yes, keep claiming that only by shutting down all cost-saving measures you can save. Idiotic. You keep claiming that your deliberate depression is anything but yours.