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Deficit, national debt and government borrowing - how has it changed since 1946? Deficit, national debt and government borrowing - how has it changed since 1946?
(2 months later)
Britain's deficit is getting worse. The government borrowed more than expected in November, Office for National Statistics data shows, reducing the chance that the government will meet its 2012/13 deficit reduction goal. Britain's deficit is marginally better this month. The government account was in surplus.
Josephine Moulds writes today: In the last set of figures before next month's budget, the Office for National Statistics said there was a net surplus in January of £11.4bn the result of bumper income tax receipts and one-off factors.
Separate figures from the ONS show the government borrowed more than expected in November, as spending rose but tax receipts fell from a year earlier. Last month's deficit showed that the exchequer was in the black by £5bn more than in January 2012, although £3.8bn of the improvement was the result of the Bank of England's quantitative easing programme being paid to Hothe Treasury.
Howard Archer of IHS Global Insight said: "The disappointing November public finance data fuel mounting expectations that at least one of the credit rating agencies will strip the UK of its triple A rating in 2013." Archer also said it "looks touch and go" as to whether the economy can avoid renewed contraction in the fourth quarter. The ONS said that once special factors such as the transfer of the Royal Mail pension fund and the QE profits were excluded the budget deficit for the first 10 months of the 2012-13 financial year was 6.6% higher than in the same period of 2011-12.
The ONS says the government's preferred measure, public sector net borrowing excluding financial sector interventions, came in at £17.5bn in November, up from £16.3bn in November 2011. Larry Elliott writes today:
James Knightley at ING bank said: "January is always a good month for revenues as it is the deadline for income tax and there are big corporation tax revenues in the month, too. This year it also got a boost from the transfer of money from the Bank of England, reflecting the partial payment of some of the interest income the BoE has received on its gilt holdings resulting from QE.
"Consequently, the underlying story isn't quite as good. Indeed, the UK's AAA rating remains under threat and with economic activity remaining subdued and tax revenues disappointing, Chancellor Osborne has little wiggle room when he presents his annual Budget next month."
UK public debtUK public debt
We have the complete set of data on Government borrowing, all the way back to the 1940s. All political parties have faced their fair share of debt through the years - almost as if the economic climate has its own life independent of who is managing it.We have the complete set of data on Government borrowing, all the way back to the 1940s. All political parties have faced their fair share of debt through the years - almost as if the economic climate has its own life independent of who is managing it.
What is the deficit? When the ONS talks about the deficit, they take a simple measure - the gap between what's coming into the government in taxes and receipts versus what's being spent. Most commentators look at net borrowing as the deficit figure, because it includes investment spending. It's different to the national debt - which is the total the country owes.What is the deficit? When the ONS talks about the deficit, they take a simple measure - the gap between what's coming into the government in taxes and receipts versus what's being spent. Most commentators look at net borrowing as the deficit figure, because it includes investment spending. It's different to the national debt - which is the total the country owes.
So last month the budget was in deficit. Here are the key facts for November - if you exclude the temporary effects of the financial interventions in the banks:So last month the budget was in deficit. Here are the key facts for November - if you exclude the temporary effects of the financial interventions in the banks:
• Public sector net borrowing was £17.5bn in November 2012; this is £1.2bn higher net borrowing than in November 2011, when net borrowing was £16.3bn
/>• Public sector current budget deficit was £15.8bn in November 2012; this is a £1bn higher deficit than in November 2011, when there was a deficit of £14.8bn
/>• April to November 2012, public sector net borrowing (excluding the capital payment recorded as part of the Royal Mail Pension Plan transfer in April 2012) was £92.7bn; this is £8.3bn higher net borrowing than in the same period the previous year, when net borrowing was £84.4bn
/>• In 2011/12, public sector net borrowing was £121.6bn; this is £4.4bn lower than the Office for Budget Responsibility (OBR) forecasted net borrowing for 2011/12 of £126.0bn
/>• Public sector net debt was £1083.6bn at the end of November 2012, equivalent to 68.5% of gross domestic product (GDP)
• Public sector net borrowing was -£11.4bn (a repayment) in January 2013; this is a £5.0bn higher net repayment than in January 2012, when net borrowing was -£6.4bn (a repayment).
/>• Public sector current budget surplus was £14.9bn in January 2013; this is a £5.1bn higher surplus than in January 2012, when there was a surplus of £9.8bn.
/>• For the period April 2012 to January 2013, public sector net borrowing (excluding the capital payment recorded as part of the Royal Mail Pension Plan transfer in April 2012) was £93.8bn; this is £1.5bn higher net borrowing than in the same period the previous year, when net borrowing was £92.3bn.
/>• January 2013 public sector net borrowing and public sector current budget figures include the first cash transfer from the Bank of England Asset Purchase Facility Fund to Government of £3.8bn, which took place on 7 January 2013.
/>• Public sector net debt was £1,162.8bn at the end of January 2013, equivalent to 73.8% of gross domestic product (GDP).
/>• In 2011/12, public sector net borrowing was £121.0bn; this is £5.0bn lower than the Office for Budget Responsibility (OBR) forecasted net borrowing for 2011/12 of £126.0bn.
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The ONS data below shows monthly, quarterly and annual debt and deficit - what can you do with it?The ONS data below shows monthly, quarterly and annual debt and deficit - what can you do with it?
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