The Deficit is actually going to RISE

LauraW10

It is also quite clear, from the forecasts in the Budget book, that the economy will now be operating with spare capacity for longer than we thought - in the parlance, there will still be a positive output gap in 2014-15 because the recovery, over this period, is expected to be a bit weaker than we thought.
Interestingly, that means that cyclical borrowing - the borrowing due to slower growth - has actually gone up in this red book, by £9bn a year in 2014-15, even as Mr Osborne has cut spending or raised taxes by £37bn. Expect Labour to make much of that figure - and don't expect them to put in the crucial caveats. Stephanie Flanders

Unbelievable! All that pain for no gain. I could weep.



http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/2010/06/weighing_the_risks_1.html#

purch

Expect Labour to make much of that figure - and don't expect them to put in the crucial caveats

....as the OP doesn't appear to want to either :eek:

LauraW10

purch wrote: »

....as the OP doesn't appear to want to either :eek:

I could weep sir - i really could:(

1984ReturnsForReal_2

He was quite clear in saying the yearly deficit would only balance in the final year..........


I will give Osbourne that.

He presented it well & very very clear.

chewmylegoff

i'm not sure how you interpreted the quote you posted as being demonstrative of an increasing deficit, may be you have invented a new type of maths where £9bn is a larger number than £37bn?

Generali

Would it be possible, OP, to post each pice of news you have once rather than coming out with a 'News Vomit', spraying Newsick over several threads at a time? It would keep the forum cleaner I feel.

Generally speaking, SHOUTING about RISES makes you look rather like a TROLL.

StevieJ

chewmylegoff wrote: »

i'm not sure how you interpreted the quote you posted as being demonstrative of an increasing deficit, may be you have invented a new type of maths where £9bn is a larger number than £37bn?

If tax take lower than it would have been due to lower growth than expected?

chewmylegoff

StevieJ wrote: »

If tax take lower than it would have been due to lower growth than expected?

reading it back i'm not sure what i was asking, or talking about. just ignore me.

RabbitMad

chewmylegoff wrote: »

i'm not sure how you interpreted the quote you posted as being demonstrative of an increasing deficit, may be you have invented a new type of maths where £9bn is a larger number than £37bn?

The 37bn is not borrowing - but I agree with the sentiment

We are going to be borrowing a lot less because we've cut our overspending but will borrow a bit more because our growth is slower.

A bit like if you currently spend £20,000 a year you don't have on your credit card and you are temporarily £6k down because of less overtime and currently plan to cut your overspending by £5K next year and your overtime earning to be £4K.

Total borrowed this Year £26K - £20K over spend, £6K lack of overtime.
Total borrowed next year £17K - £15K over spend, £2K lack of overtime.

Then you decide actually I can cut £12K off my over spend but then only get £2K in overtime.

Total borrowed next year £12K - £8K over spend, £4K lack of overtime.

The amount your having to borrow because your income didn't grow by what you expected has increased. Simples.

LauraW10

Generali wrote: »

Would it be possible, OP, to post each pice of news you have once rather than coming out with a 'News Vomit', spraying Newsick over several threads at a time? It would keep the forum cleaner I feel.

Generally speaking, SHOUTING about RISES makes you look rather like a TROLL.

Oh dear - personal attacks again and nothing of substance to say.

Put me on IGNORE PLEASE GENERALI!I BEG YOU. I PROMISE I WON'T MISS YOUR POSTS!

Bullfighter

Remember this is a best case plan for reducing the DEFICIT. ie we will be reducing the amount we are overspending by every year.

By 2014/15 our DEBT will be close to £1.35TRILLION, with unfunded liabilities many magnitudes greater. Our only saving grace is that we have long term gilts (15-30 years).. otherwise this budget would be inconsequential and we would be Greece II.