UK Borrows Obama’s Economists: “Unexpected” Results Appear

Wow, Sterling is getting hammered this morning, down to 1.4839 at the moment. There are some bad signs about their debt and there’s this

The government borrowed another £4.3bn last month to plug the growing hole in the UK’s finances, figures show.

It is the first time the government has borrowed money in January – usually a bumper month for income from tax receipts – since records began in 1993.

Andrew Goodwin, senior economic adviser to the Ernst & Young ITEM Club, called the figures “pretty ghastly”.

The UK’s total borrowing for the financial year now totals more than £122bn.

January’s borrowing figure, released by the Office for National Statistics, came as surprise to many economists.

They had expected to see a surplus in January’s budget, allowing it to repay around £2.8bn of its debts.

But levels of income tax and capital gains tax received by the government were significantly lower than in previous years, the ONS said.

Tax receipts dropped 11.8% compared with January last year, when the government was able to repay £5.3bn.

They’ve got to cut spending. There’s simply no other way.

And we have got to cut it as well.

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