Ignore the rhetoric: the deficit is growing

According to the latest ONS borrowing figures, the deficit for April was £6.3bn, around £2bn lower than expected. Public sector net borrowing for the previous year (2012/13) was revised down from £120.6bn to £119.5bn (compared to a deficit of £120.9bn in 2011/12).

According to the latest ONS borrowing figures, the deficit for April was £6.3bn, which is around £2bn lower than expected. Public sector net borrowing for the previous year (2012/13) was revised down from £120.6bn to £119.5bn, compared to a deficit of £120.9bn in 2011/12.

On the surface this would appear positive – the deficit is lower than expected; and less than at the same point last year.

However, if you take out the effects of the transfer of the Royal Mail Pension Plan and the QE coupons from the Bank of England, the deficit was actually £10.2bn last month – £1.3bn higher than last year.

In other words, don’t take the triumphalism of the Tory Party and its media cheerleaders at face value. The government is borrowing more than it was borrowing in 2012.

 

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