Tuesday 24 January 2023

No 248: Record December UK Government Borrowing

IT has just been announced that UK Government borrowing in December was £24.7 billion - the highest ever for December in the 30 years since modern records began.

One reason for this is the financial support beging given to households and businesses for the energy bills. Another is from the jump in government interest rates caused by the disastrous economic policies of the Truss administration (so much damage in less than 2 months in power!).

The implications for future increases in government spending are serious. At a time when there are pressing needs for more funding for the NHS and higher wages for government workers, how much is going to be possible given these already extremely high amounts of borrowing?

An important topic too for your Economic studies, so take the time to read this:
https://www.theguardian.com/business/2023/jan/24/energy-support-uk-government-spending-interest-payments?CMP=Share_AndroidApp_Other

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