The Treasury Denies Plan to Move the Debt Goalposts; ECONOMICS

The Birmingham Post (England), July 19, 2008 | Go to article overview

The Treasury Denies Plan to Move the Debt Goalposts; ECONOMICS


Byline: By Sumeet Desai Special correspondent

The UK may have to relax its fiscal rules after data yesterday showed public borrowing at record levels - threatening to breach the restrictions the Government set itself on debt.

Public sector net borrowing for the first quarter was pounds 24.4 billion - the biggest quarterly figure since records began in 1946.

The deficit for the period was pounds 20.4 billion, also a record high.

"Horrific, absolutely horrific. Net borrowing this financial year is almost pounds 10 billion above the same period last year, which suggests the full year figure is going to be way, way above official government forecast," said Investec economist Philip Shaw.

As Chancellor, Gordon Brown established two rules to govern public finances - that the Government only borrows to invest over the economic cycle and public debt be limited to a prudent and sustainable level - 40 per cent of GDP.

Public debt is running close to 40 per cent and analysts say the Government could breach the limit as the economy is slowing and there is greater pressure to spend.

According to some reports yesterday, Treasury officials are working on plans to reform the rules and this could be announced in the pre-budget report in the autumn, and possibly allow for greater borrowing.

A Treasury spokesman said the report was "pure speculation and based on comments over three months old".

"We have always said at the end of this cycle we will set rules for the next cycle," he said.

However, suggestions the Government might relax its rules spooked markets.

Sterling fell against the dollar and euro on investors' growing sense the UK economy is facing severe headwinds and the government is unable to support it. …

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

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.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

The Treasury Denies Plan to Move the Debt Goalposts; ECONOMICS
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
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?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    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.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.