Economists predict higher taxes and borrowing after UK deficit overshoots forecasts – as it happened
by Graeme Wearden from on (#6Q4E2)
Tough budget looms after UK deficit hits 3.1bn in July - ahead of City forecasts of 1.5bn, and soaring over OBR forecast of 100m
- Full story: UK government borrowing hits higher than expected 3.1bn in July
- Analysis: Reeves can point to ONS public finances report as cover for a harsh budget
The big picture remains that the UK's national debt is the highest since the early 1960s, as a share of the economy.
Public sector net debt excluding public sector banks is now estimated to be 99.4% of gross domestic product (GDP), at around 2.74 trillion.
We expect ... Reeves to borrow around 20 billion pounds per year more than planned in the March Budget for the next five years as well as funding medium-term spending with higher taxes."
Continue reading...