Pounds 8bn Hole in Public Finances to Embarrass Osborne

By Lynch, Russell | The Independent (London, England), March 18, 2013 | Go to article overview
Save to active project

Pounds 8bn Hole in Public Finances to Embarrass Osborne


Lynch, Russell, The Independent (London, England)


Low tax receipts blamed as forecasts made in December fall badly short in Budget week

George Osborne, the Chancellor, faces political humiliation this week with public borrowing figures in the Budget expected to be 8bn higher than official estimates made just three months ago, a leading economic forecaster has warned.

The Ernst & Young Item Club says the UK's borrowing bill - stripping out one-offs such as the transfer of 28bn in Royal Mail pension fund assets to the public coffers - could jump to 88bn for the current financial year, up from the 80bn forecast by the independent Office for Budget Responsibility in December.

The forecaster pins the blame on lower tax receipts and disappointing revenues from the sale of the 4G spectrum, which raised 2.3bn instead of the 3.5bn pencilled in three months ago by the OBR. A limit imposed by the Office of National Statistics on the accumulated interest payments racked up by the Bank of England on its holdings of government gilts under quantitative easing has also created another black hole in the accounts.

Andrew Goodwin, the Ernst & Young Item Club's senior economic adviser, said: "Yet again borrowing is going to come in higher than forecast. The Chancellor is faced with having to backtrack on his earlier claim that borrowing will fall between 2011-12 and 2012-13 if the statistical fudges are excluded. Economically this is of little importance, but politically it will prove to be very embarrassing.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Pounds 8bn Hole in Public Finances to Embarrass Osborne
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?