UK borrowing hits record monthly high of £20bn

[Irish]

UK public borrowing hit an all-time high of £20.3bn for a single month in November, official figures showed.


Nearly a third of this spending was accounted for by social benefits such as Jobseeker's Allowance - the so-called "bill for failure" - which hit £16.2bn. This is the highest for at least eight years, the Office for National Statistics (ONS) said.

Other unwanted records thrown up by the figures include a £16.2bn current deficit - the gap between spending and receipts.

The deficit for the year so far has reached £83.2bn, although the Chancellor has pledged to halve the deficit within four years and the Government is passing a Fiscal Responsibility Bill to put the commitment on a legal footing.

The IFS also said that debt levels could remain high "for a generation" - around 60pc of national output - without policies to tackle the impact of the ageing population on Britain's public finances.


I give up.....

[Bing o]

RIP UK, victim of the socialist ponzi scheme.

[Dunk76]

Never fear, they're going to tax and regulate the arse off our biggest commercial sector! That'll solve everything!

[Fittster]

The interesting thing is who is buying the debt.

[Dunk76]

Who is buying it?

[FourWheelDrift]

We're paying for it.

[RichardD]

Fittster said:

The interesting thing is who is buying the debt.

I posted it once on PH before (a link to a pdf from the BofE website), but basically the majority of QE money has been to purchase gubbermunt debt.

[RichardD]

This is Q3 http://www.bankofengland.co.uk/publications/other/...

Tonker - thanks. The continued debt without QE money to purchase it (so being borrowed money with no real interest cost) - is going to be the 2010 brown stuff / fan moment from what I've read

Edited by RichardD on Friday 18th December 15:23

[Fittster]

FourWheelDrift said:

We're paying for it.

And when we stop who is going to step in?

[FourWheelDrift]

Fittster said:

FourWheelDrift said:

We're paying for it.

And when we stop who is going to step in?

Ocean Finance.

[Dunk76]

FourWheelDrift said:

Fittster said:

FourWheelDrift said:

We're paying for it.

And when we stop who is going to step in?

Ocean Finance.

I think the new rules on high risk investment vehicles would prevent Ocean from doing so though?

[Plotloss]

anonymous said:

[redacted]

Excuse me for being thick.

But it sounds like we're printing money to buy our own debt.

Am I understanding that correctly?

[FourWheelDrift]

Dunk76 said:

FourWheelDrift said:

Fittster said:

FourWheelDrift said:

We're paying for it.

And when we stop who is going to step in?

Ocean Finance.

I think the new rules on high risk investment vehicles would prevent Ocean from doing so though?

Didn't you hear they aren't high risk any more, they have good financial backing from by WeBuyYourGold.com & WebuyAnyCar.com

[Dunk76]

FourWheelDrift said:

Dunk76 said:

FourWheelDrift said:

Fittster said:

FourWheelDrift said:

We're paying for it.

And when we stop who is going to step in?

Ocean Finance.

I think the new rules on high risk investment vehicles would prevent Ocean from doing so though?

Didn't you hear they aren't high risk any more, they have good financial backing from by WeBuyYourGold.com & WebuyAnyCar.com

Along with WeBuyYourVote.com trying to turn the United Kingdom into the world's largest branch of Lidl, I can't wait!

The future's bright, the future's Red.

[RichardD]

Plotloss said:

...
Excuse me for being thick.

But it sounds like we're printing money to buy our own debt.

Am I understanding that correctly?

Yes.

BofE creates money out of nothing/thin air/mervins ears/gordons @&5£

Money is then used to buy government gilts (see my earlier link to BofE PDF).

Its a magic patching up of the economy by diluting the value of the money already flowing around in it.

As per Tonkers post above, without QE money to buy the massive amount of issued debt, the markets will want a higher interest rate to fund gubbermunt spending! So we will all go to work to pay tax to pay the interest on the debt. Lubbly .

[Ali G]

RichardD said:

Plotloss said:

...
Excuse me for being thick.

But it sounds like we're printing money to buy our own debt.

Am I understanding that correctly?

Yes.

BofE creates money out of nothing/thin air/mervins ears/gordons @&5£

Money is then used to buy government gilts (see my earlier link to BofE PDF).

Its a magic patching up of the economy by diluting the value of the money already flowing around in it.

As per Tonkers post above, without QE money to buy the massive amount of issued debt, the markets will want a higher interest rate to fund gubbermunt spending! So we will all go to work to pay tax to pay the interest on the debt. Lubbly .

No, you're not thick Plotloss!

Agree with the above, but the gubbermunt will be raising more income from plant-food-gas tax to offset this - just before sending it all (and more) to Mugabe et al to buy more limos.

I dispair.

Chimps would have done less harm (and would have been more fun on the telly)

[anonymous-user]

Plotloss said:

Excuse me for being thick.

But it sounds like we're printing money to buy our own debt.

Am I understanding that correctly?

yes

Edited by fbrs on Friday 18th December 20:04