UK government borrowing hits record £77bn six-month high

The debate on current government spending continues as Conservatives and analysts demand a cut, but the policymakers are stating that the current numbers are in line with those forecasted and a cut now would not be a wise move.

Government borrowing reached a record high of £77.3bn in the first six months of the fiscal year – double the deficit for the same period last year, official data showed today.

The Office for National Statistics also said public sector net borrowing came in at £14.8bn for September, the worst-ever reading for the month and up from a shortfall of £8.7bn in September last year.

The government expects borrowing to total £175bn in the current fiscal year to next March, although there is growing speculation that the figures could be revised up by the chancellor, Alistair Darling, in his pre-budget report expected next month.

The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza