UK Government Spending Meltdown: IMF Beckons

Just for the avoidance of any doubt, check out this short BBC article. The Government has borrowed £13 billion in June, up from £7.5 billion in June last year.

So borrowing is more or less doubling. At the same time tax revenues have fallen £32 billion.

So, bag of fag packet exercise:

Total tax take likely to fall about £40 billion after adjustments to end of this year.
total government borrowing to double to £150 billion (minus the £70 ‘expected’).

Structural deficit (this is the money being spent for which there is no income, equivalent to the spend over your monthly salary payments) - c. £120 billion.

So whoever gets in Government are going to have to slash that much public spending, for the record that is nearer 20% than 10%. My bet is still that the IMF will have to do this when our politicians bottle it.

Surely after this, Labour can never win power again?

Subscribe by RSS Subscribe by Email