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.