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Alistair Darling rethink as gloom deepens and public borrowing surges
JICWyllie
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7-19-2008 10:22 AM
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tags:
economy
,
government
,
i-debt
,
i-increase
,
i-record
JICWyllie
says:
Last time round, the UK had the discovery of North Sea oil to save it. This time, it doesn't.
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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/c7e1bb99-0f55-4999-98e6-291e588af522/A4F9F9FE-A82F-4B1F-848F-3D371B8F3F0B/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://business.timesonline.co.uk/tol/business/economics/article4360447.ece" href="http://business.timesonline.co.uk/tol/business/economics/article4360447.ece" style="font-size: 11px;">business.timesonline.co.uk</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://business.timesonline.co.uk/tol/business/economics/article4360447.ece"><P> Alistair Darling admitted yesterday that the Treasury’s fiscal rules are under review as fears over rapidly worsening government finances were fuelled by a surge in borrowing to levels not seen since the end of the Second World War. </P><P> In the latest confirmation that the public finances are sliding into the red at an alarming pace, net government borrowing over the past quarter, the first of the new financial year, leapt to £24.7 billion.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://business.timesonline.co.uk/tol/business/economics/article4360447.ece"> Economists said that on present trends total public borrowing for the full 2008-09 financial year could surge to levels as high as £57 billion, and perhaps more, compared with Mr Darling’s March Budget forecast of £43 billion</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://business.timesonline.co.uk/tol/business/economics/article4360447.ece">In June national insurance payments fell 8.3 per cent compared with a year earlier, VAT payments by 4.6 per cent and corporate tax payments were flat.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://business.timesonline.co.uk/tol/business/economics/article4360447.ece"> Treasury officials themselves are understood to be increasingly fretful over the worsening financial trends.</blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;"> </td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/A4F9F9FE-A82F-4B1F-848F-3D371B8F3F0B/blog/" title="blog or email this clip"><img src="http://content6.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>
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