Current location:International Iterations news portal > entertainment
Blow for Rishi Sunak's hopes of pre
International Iterations news portal2024-04-24 14:49:13【entertainment】5People have gathered around
IntroductionRishi Sunak's hopes of pre-election tax cuts suffered a major blow today as figures showed governmen
Rishi Sunak's hopes of pre-election tax cuts suffered a major blow today as figures showed government borrowing coming in above forecasts.
The public sector was £120.7billion in the red in the year to March, less than the previous 12 months but £6.6billion more than predicted by the Treasury watchdog.
Despite separate data suggesting the economy is recovering from recession, analysts questions whether Chancellor Jeremy Hunt will now have scope to ease the burden before the country goes to the polls.
Many Tories have been pinning their hopes on another round of tax cuts to open a dividing line with Labour and give Brits a feel-good factor before the election.
Borrowing was £11.9billion in March, which is £4.7billion less than a year ago, but higher than the £10billion expected by most economists.
Rishi Sunak and Jeremy Hunt have been hoping to push through more tax cuts before calling the election
The public sector was £120.7billion in the red in the year to March, less than the previous 12 months but £6.6billion more than predicted by the Treasury watchdog
There was brighter news in the closely-watched PMI, which showed the private sector growing at its fastest rate for almost a year
The Office for Budget Responsibility (OBR) had forecast borrowing of £114.1billion in the year to the end of March.
Jessica Barnaby, ONS deputy director for public sector finances said: 'Spending was up about £58billion, with increased spending on public services and benefits outstripping large reductions in interest payable and energy support scheme costs.'
Andrew Goodwin, senior economic adviser to the EY Item Club, said: 'Unless the Chancellor is prepared to assume even greater spending restraint, it's unlikely there will be another tax-cutting fiscal event before the election.'
However, Rob Wood at Pantheon Macroeconomics said: 'We expect the Chancellor to cut taxes again before a likely October or November general election, despite borrowing overshooting his forecasts.'
He added: 'Hunt can plan for another year of unrealistically weak public spending to generate 'headroom' against his fiscal rules and thereby manufacture the funds to cut taxes.
'The next government will, therefore, face a tricky choice between raising taxes to fix creaking public services or holding the line on the Chancellor's recent tax cuts.'
There was brighter news in the closely-watched PMI, which showed the private sector growing at its fastest rate for almost a year.
The reading was 54 in April, up from 52.8 in March - with anything above 50 representing expansion.
Chris Williamson, chief business economist at S&P Global Market Intelligence said: 'Early PMI survey data for April indicate that the UK economy's recovery from recession last year continued to gain momentum.
'Improved growth in the service sector offset a renewed downturn in manufacturing to propel overall business growth to the fastest for nearly a year, indicating that GDP (gross domestic product) is rising at a quarterly rate of 0.4 per cent after a 0.3 per cent gain in the first quarter.'
Overall, the ONS figures show the UK's overall national debt was £2.69trillion in March, an increase on the £2.54trillion seen a year ago.
As a share of the economy, debt was around 98.3% of the UK's annual gross domestic product (GDP) in March, around 2.6 percentage higher than a year earlier and remaining at levels last seen in the early 1960s, the ONS said.
Public sector debt remains at levels last seen in the 1960s, according to the ONS
A Treasury spokesman said: 'Debt increased in recent years because we rightly protected millions of jobs during Covid and paid half of people's energy bills after (Vladimir) Putin's invasion of Ukraine sent bills skyrocketing.'
He added the Government 'must stick to the plan to get debt falling'.
The figures show the impact of inflation, with benefit payments surging by £36.9 billion to £291.4 billion in the year, as payouts saw inflation-linked increased and due to cost of living support.
Central government wages also rose by £21billion, including across health and education, while goods and services also cost the Government more.
But there was some relief as inflation eased back from the highs seen in October 2022, which helped interest on inflation-linked debt fall 27 per cent to £78.3 billion over the year.
In March, borrowing debt interest increased by a fifth to £2.5 billion, due to changes in Retail Prices Index inflation.
Borrowing overall is still lower than the previous year, which was pushed up by energy support payments after Russia's war with Ukraine sent gas and electricity costs soaring.
Address of this article:http://www.videocameralive.com/tag/sm-g973f/
Very good!(4)
Related articles
- Aboriginal spears taken by Captain Cook in 1770 are returned to Australia's Indigenous people
- Products from Various Countries & Regions on Display at CIFTIS
- Camping, Sports Activities Thrive at Beijing Expo Park
- Chinese Women's Volleyball Team Marches into AVC Cup Final
- Dodgers manager Dave Roberts working with Shohei Ohtani on strike zone discipline
- Number of Teachers Continues to Increase
- Tsinghua Tops Global Ranking in Three Subjects
- China's Pre
- UEFA picks two video review referees at center of controversy for Euro 2024 duty
- Medicinal Herb Harvest Helps with Rural Revitalization in NW China
Popular articles
Recommended
Korean War veteran will finally get his Purple Heart medal, 73 years late
Seventh China
National Great Craftsman Forum Opens in Changsha, C China
China to Further Improve Services for Village Residents
Teresa Giudice, 51, of RHONJ poses with her mini
China's Social Security Fund Reaps 4.27 Pct Investment Return in 2021
Guizhou Achieves Progress in Economic Development, Poverty Alleviation
World Skills Competition Promotes Vocational Education Exchange
Links
- Israel prepared to handle any Iran scenario, defence chief says
- Dealing with fast spreading pest hits new milestone for Otago Regional Council
- HK's West Kowloon arts hub to run out of funds in 2025: CEO
- Flood, weather warnings as storm hits Australia
- Trump ordered to end attacks on judge's family in hush money case
- Two critical after incident on Auckland street
- 'Major logistics exercise' to deliver humanitarian aid from NZ to Gaza
- Pair arrested for alleged theft of $20,000 worth of Lego
- Israeli military says troops captured hundreds of fighters in Gaza hospital
- Media Minister had 'more than enough time' to find solutions