Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Government borrowing rises higher than expected to £55bn

by August 19, 2022
August 19, 2022
Government borrowing rises higher than expected to £55bn

Government borrowing was £3 billion higher than expected in the year to July, putting pressure on the next chancellor to keep costs down to meet fiscal targets.

Borrowing since April came to £55 billion, compared with the £52 billion forecast by the Office for Budget Responsibility.

The government is under pressure to deliver more support for households facing the worst cost of living crisis in decades, while an impending economic downturn is expected to eat into tax revenues.

Public sector net borrowing was £4.9 billion in July, down by £800 million from the same month last year, but £5.9 more than July 2019 when the budget was in surplus.

The government usually runs a surplus in July because tax revenues are boosted by returns from self-employment, which are typically submitted twice a year in January and July.

Nadhim Zahawi, the chancellor, said: “I know that rising inflation is creating challenges for families and businesses, and it is also putting pressure on the public finances by pushing up the amount we spend on debt interest.

“To help people during this difficult time, government support is continuing to arrive in the weeks and months ahead, targeted to those who need it most like pensioners, people on low incomes, and those with disabilities. We are taking a balanced approach: safeguarding the public finances while providing significant help for households.”

Debt interest payments fell to £5.8 billion from a record £19.7 billion in June. Government bonds are indexed to the retail prices index, which hit 12.3 per cent last month, its highest level since March 1981. With inflation forecast even higher, the cost of servicing that debt will rise.

The public finances have come under sharp scrutiny in recent weeks after tax cuts became the main dividing line between the two candidates for prime minister.

Rishi Sunak believes that taxes should be maintained at their current level until inflation is brought down while Liz Truss plans to cut taxes immediately in an attempt to boost the economy.

Read more:
Government borrowing rises higher than expected to £55bn

0
FacebookTwitterGoogle +Pinterest
previous post
Covid infections study increases calls for masks
next post
A Complete Guide to Email Marketing Services

You may also like

UK steel industry faces fresh crisis as US...

May 31, 2025

British Steel set to axe 800 workers

February 2, 2023

Furniture retailer Made.com to enter administration

November 7, 2022

Employment Tribunal system needs ‘whole system reboot’

July 25, 2023

AviaGames Triumphs with Three Wins at the 2024...

December 13, 2024

Martyn’s Law: What does it mean for businesses...

November 10, 2023

Strategic Ventures: How UK Businesses Navigate Investments in...

January 17, 2024

Facebook’s parent Meta prepares to slash thousands of...

November 7, 2022

Bernie Ecclestone pleads guilty to fraud charge after...

October 12, 2023

Lord Sugar secures three-year deal to continue The...

March 20, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Universities in Libertarian Land

      June 6, 2025
    • Elon Musk may speak to Trump aides in push to calm feud

      June 6, 2025
    • Everyone Talks About Leaving a Better Planet for Our Children: Why Don’t We Leave Better Children for Our Planet?

      June 6, 2025
    • MARK HALPERIN: Democrats try to construct a Frankenstein candidate while JD Vance gains momentum for 2028

      June 6, 2025
    • ‘Gone too far’: GOP lawmakers rally around Trump after Musk raises Epstein allegations

      June 6, 2025
    • Democrats begin to embrace Musk amid Trump spat after party railed against him as a ‘dictator’

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,012)
    • Politics (15,544)
    • Stocks (3,130)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved