This cannot go on without our ability to borrow being curtailed by international pressure which would start a vicious spiral. Gordon Brown (as Osborne pointed out yesterday) will not even discuss any cuts now. He is determined to persist with unrestrained expenditure until his bitter end.
Christina
SKY NEWS
21.7.09
Public Sector Borrowing Hit £13bn In June
Public sector net borrowing soared to £13bn in June compared with £7.5bn a year earlier.
The rise takes Britain's net debt to its highest proportion of UK output since records began.
Public sector net borrowing in June saw the nation's net debt swell to £798.8bn, which is equivalent to a record 56.6% of gross domestic product (GDP), according to the Office for National Statistics (ONS).
June's borrowing was £5.5bn higher than the £7.5bn seen a year ago, which also marked a record for the month.
The figure was released as Government accounts showed that the amount of tax collected plummeted by £32bn last year.
Today's ONS data once again highlighted how the recession and slump in spending was hitting tax receipts.
Less shopping means less tax taken
Corporation tax takings plunged by 14.1%, VAT by 15.9% and income tax by 3.9%.
But public spending rose again, with social benefit outlays up 9.7% to £13.3bn more people claimed unemployment benefit.
Total Government outlay over June hit £49bn, up from £44.2bn a year earlier, while total receipts fell 5.7% to £35.5bn.
Today's figures will reignite fears over Britain's public finances.
Bank of England Governor Mervyn King recently said the Government's borrowing levels were "extraordinary".
Chancellor Alistair Darling predicts net borrowing over the year hit £175bn - economists say £190bn is more likely.
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