Amidst the flurry of press interest on the Euro I did not report this week’s latest figures on the progress of the deficit reduction strategy.
In June public spending continued to rise, as planned. Borrowing also rose, to £14 billion extra in June 2011 compared to £13.6 billion in June 2010. The cash requirement was much higher. In order to hit this year’s targets for modest reductions in the rate of increase in borrowing, the government needs to do more to lower its spending or raise its revenues.
The press continues to report “cuts”. It needs to report spending and borrowing levels, which remain high and rising.
July 23, 2011
Glad to hear JR point out on Any Questions on Radio 4 today that despite “cuts”, spending is still rising under this government.
July 23, 2011
What are they spending it on then? Certainly not public services. They’ve cut benefits, reduced the armed services and police. Where is all the money going exactly?
July 24, 2011
Interest for our enormous debt, payments to the EU for their overspending and funding for illegal and pointless wars.
July 24, 2011
A 74% rise in our net annual contribution of £13.5 billions to the wicked empire of the EU.
July 23, 2011
You don’t seem to be part of this Government, Mr R.
You did very well on Any Questions btw. You’re an excellent politician.
July 23, 2011
Perhaps its about time the government started treating its budgeting as in the private sector: money for PIIGS? sorry, not in the budget; money for a war of choice? sorry, not in the budget etc.
July 23, 2011
Indeed and yet it seems we can still afford to give another huge sum to the Irish (in reducing the interest rate on the existing loans). Meanwhile government owned banks all around continue to not lend and even pull funds back from sound private sector companies all over the place with the “no growth” consequences we see all around.
Which is better a loan to someone overseas who cannot afford to repay or one to a UK business that can will will create jobs, lower benefits and generate tax revenues in the process?
We also can afford, it seems, the insane green house bling subsidies and over priced energy.
Insanity piled on insanity by Cameron, Osbourne, Clegg and Huhne.
Even Charles Moore seems to be becoming a socialist now I see from his silly article in the Telegraph today perhaps his religion and age have finally fully overcome his sound earlier logical faculties completely.
Here, in the south of France, I have never known the sea to be as cold as it is at this time of year (and the pound as totally worthless) is this extra atmospheric CO2 doing any net warming – I tend to think not.
July 23, 2011
I have a lot of time for Charles Moore and enjoy his weekly Spectator column but he doesn’t seem able to distinguish between right of centre libertarian / conservative policies and crony capitalism / politics.
You can say what you like about the last 20 years but one thing that can’t be laid at the door is that there has been a free market (see the credit crunch for the most obvious sign) nor a democracy (see the EU constitution for the most obvious sign) in the UK or Europe.
Where has Heffer been hiding himself? Let’s hope when his enforced period of silence is finished we can start to enjoy his writings on a regular basis again.
Intelligent right wing voices articulating conservative principles are becoming few and far between (our host being one of the remaining stragglers) .
July 24, 2011
I agree almost no one make the highly moral case for small government and free trade and yet it is the only thing they actually works to benefit the majority.
July 23, 2011
I read Charles Moore’s article as a lament against crony capitalism. The type of govt-corporate collusion that some call fascism. On that I wholeheartedly agree with Moore. When govt steps in to legislate to selectively prevent bad businesses from failing, then free market capitalism ceases to function.
July 24, 2011
He is one of my favourite journalists. He is fully of kindly common sense and I like that. His big point is that the bankers are becoming too big for their boots and linking up with governments to pay their unmanageable debts for them.
Just as Labour were totally unable to see the dangers of the Trades Unions, so perhaps we on the right are unable to see the dangers of the very greedy bankers?
July 23, 2011
Is this level of borrowing in line with the Government’s strategy? If not by what amount is it different and what are the major causes of the difference.
July 23, 2011
More borrowing than expected caused by lower growth leading to lower tax revenues.
There really are very little cuts in overall spending although various departments are being cut due to others, debt interest (not really a department but with the amounts being spent on it it dwarfs other major departments), NHS, Foreign Aid, EU, seeing their spending continuing along the ‘more cash = better services’ New Labour mantra.
If the coalition wants to stick to it’s planned borrowing for this year (£122bn) it will have to trim £2bn per month compared to last year for the remaining 9 months. Seeing as how borrowing for the first 3 months has been above the borrowing for last year it’s looking very doubtful it will happen.
July 23, 2011
I’ve been reading about the US cap on their government’s borrowing.
Perhaps we should have one in the UK, with Parliament having to set a level each year. I suspect that if we had had such a cap when Brown was in power, we might not have such a big deficit now.
July 23, 2011
The only thing this government is doing to try and reduce borrowing is increase taxation. They keep “finding” money for this and for that, normally to benefit non UK citizens such as the EU and overseas aid. For the past twelve months I have wondered why the markets seem to think that they are dealing with Labour’s mess when they don’t seem to be making any progress despite continually talking about cuts whilst continuing to increase spending.
July 23, 2011
So Mr Redwood, what do you make of yesterdays €2.9bn bailout of the Bank of Ireland by the RBS which is 58% owned by the UK taxpayer?
July 23, 2011
Yes, well done on Any Questions
Probably the first time the audience swayed with your point of view and against that of the Eagle Lady and her ilk. I couldn’t help but think Cameron’s answers on the show would have mimicked Ms Eagle’s more closely than your own.
July 23, 2011
Since public spending is actually moving assets around the estate, public financial matters should always be reported neutrally.
It would be good if the public are not fed with the story written entirely from the perspective of the recipient of public money but also from the perspective of the giver which is the taxpayer, present and future and, when more money is printed and inflation is the result all of us are the givers.
July 24, 2011
Mr Redwood
You said some fine things on Any Questions.
It was also good to hear Tony Benn. I rarely agree with him but I admire his support for democracy (something who obviously share with him) and particularly his joke about German colonies.
Anna Eagle was lost, poor thing.
July 24, 2011
The Telegraph says that Mr Cameron and his tiny little coterie is neglecting the backbenchers and insulting them by non attendance at their traditional meetings. He is, so we read, rarely there for them and never in the social bars and tea rooms.
He had lots of time for the people at News International though didn’t he.
When the Euro crisis blows up in his face, and when inflation pushes the Unions onto the streets, I do hope the backbenchers will be there for him……