UK public sector debt set to rise sharply

This is undoubtedly the toughest Pre-Budget Report (PBR) that labour has had to deliver since it took office in 1997.

A slowing economy & tax cuts mean that borrowing will rise

 

This is undoubtedly the toughest Pre-Budget Report (PBR) that labour has had to deliver since it took office in 1997. For a start, this is the first recession the government has experienced although one was only just avoided in 2002, helped by increased public spending. But this time, the fiscal position is much less favourable, with a budget deficit of 3% of gdp compared with a surplus of 1½% of gdp in 2000 before the sharp economic slowdown began in 2001.

 

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