Government borrowing in February less than expected

[fullyautomatix]

The UK government borrowed £12.4bn in February, less than economists had expected, official figures have shown.

January's borrowing figure was also revised down sharply to £43m from £4.3bn.

The UK's total borrowing for the financial year is now more than £130bn. The government's borrowing target for the year to the end of March is £178bn.

The government is suffering from reduced tax receipts because of slow economic growth.

Although the UK's overall level of debt is similar to other major economies, it has increased its borrowing during the downturn at a much faster rate than its competitors.

Chancellor Alistair Darling has pledged to halve the budget deficit in percentage terms over the next four years, but argues that making cuts now could harm the UK's recovery from recession.

Boomed I tell ya!! Great news just before the elections.

Borrowing is at £12bn and it is considered to be low. Not long before trillion is the new billion.

[TimberWolf]

So we will only have borrowed some £3000 per head of population this financial year and hope to borrow less than in future years. Meanwhile the debt gets bigger and at some stage we're going to have to pay that back rather than increase it less.

[shaunbhoy]

So we will only have borrowed some £3000 per head of population this financial year and hope to borrow less than in future years. Meanwhile the debt gets bigger and at some stage we're going to have to pay that back rather than increase it less.

Why don't we just declare ourselves Third World and have Gordon declare all our debt written off?

[fullyautomatix]

Debt is wealth, the New Labour mantra.

[DimPrawn]

Why don't we just declare ourselves Third World and have Gordon declare all our debt written off?

Patience please. After he wins the election.

[wurzel]

Patience please. After he wins the election.

Don't think he will now. Momentum is definitely with the Tories (though the polls seem very volatile). Might even have a flutter on a Tory majority at the election.

[fullyautomatix]

Don't think he will now. Momentum is definitely with the Tories (though the polls seem very volatile). Might even have a flutter on a Tory majority at the election.

<sarcasm>
Don't be silly. Tory majority? So they can come in and slash public spending? Make all those cushy pen pushing jobs redundant ? They will wreck havoc on this country and take us all back to stone age. No way ! No sane person will vote those dimwits into power.
</sarcasm>

[wurzel]

<sarcasm>
Don't be silly. Tory majority? So they can come in and slash public spending? Make all those cushy pen pushing jobs redundant ? They will wreck havoc on this country and take us all back to stone age. No way ! No sane person will vote those dimwits into power.
</sarcasm>

Well, I'm not a natural Tory but they might get my vote this time because I'll do anything to get rid of Brown. I'm not really a natural Lib Dem voter either but our local MP (David Heath) is a very approachable guy who works hard for his constituency. Our Tory candidate is Anunziata Rees Mogg (who I believe has been parachuted in) & I don't know much about her. The Tory that came round canvassing for the last locals was an exteremely aloof individual & I voted Lib Dem just to spite him.

Incidentally, according to a mate of mine, Lib Dem voter = Tory who hasn't been mugged yet.

[ratewhore]

Why don't we just declare ourselves Third World and have Bono declare all our debt written off?

FTFY

[sasguru]

It is a valid point that a Tory "slash and burn" approach (if that is what they intend) will wreak havoc on an already fragile economy and may tip the country into a more severe recession/depression than we have hitherto seen. Cutting loads of public sector jobs will inevitably affect demand in the private sector too.

It has to be done however, the question is when. External markets will look for decisive measures but any really decisive measures will have the effect described above.

Caught between a rock and hard place - the next chancellor cannot win.

Still as a country we deserve it for living in cloud cuckoo land for so long.

PS I think I'll dig my copy of Fantasy Island which was written before the bust and is as good a description of this non-sceptred isle as I know.