Public sector borrowing

In their March forecast this year the Office of Budget Responsibility stated that the UK government would borrow an additional £354.6bn in the year ending that same month. The latest government figures for what they actually borrowed was £298 bn. So the outturn was £56.6bn or 16% lower than the official OBR forecast. They underestimated revenue and overestimated spending.

The latest figures we have are for July, one third of the way through the new financial year. In March the OBR forecast £233.9bn of extra government borrowing this year. The July figures saw the actual borrowing fall by more than £10bn that month or almost a half of the July 2020 total. Once again spending was lower and revenue higher than official forecasts. If the economy records similar progress from here as over the first four months of the financial year there will be another welcome substantial undershoot of the OBR estimates for the current year.

These large changes to forecast matter, as it shows the Chancellor is called to make judgements about spending, taxing and debt based on a model of the economy which tends to pessimism on both spending and revenue outturns. The model seems to be pessimistic about the ability of the UK economy to recover, and shy of accepting that the best way to get the deficit down is faster growth. Revenues are highly sensitive to extra activity, as the huge increases in Stamp duty receipts and taxes on entrepreneurial activities demonstrate this July.

I share the OBR and Treasury wish to get the deficit down, but I want to get it down by cutting the need for special spending to offset a weak economy and lockdown costs, and seeing revenues rise thanks to more activity. Of course government also needs to manage the large public sector well and avoid waste and low productivity. That requires daily action by Ministers and  senior officials over a range of activities, which I will be exploring from time to time in specialist pieces here. The message today is lifting lockdown restrictions has boosted revenues and cut public spending for the right reasons. We need more and faster growth to bring the deficit down further.

 

217 Comments

  1. Mark B
    August 24, 2021

    Good morning.

    The fact that the government borrowed a bit less than some non-body guessed it would is hardly calls for celebration. I mean, look at all the wasted money that has been spent. Now if we were to take that away from the borrowed money I wonder how much better we would still be ?

    There is so much room for improvement that no amount of spin is going to put a gloss on what has been, and continues to be, rank poor economic management by the Tory Party of the last decade.

    1. MiC
      August 24, 2021

      Look, if you give barrowloads of money to your rich friends – which the working population are legally bound to provide by their sweat and taxes – then what is the difference in principle between that and serfdom?

      It’s dismally ironic, that those who proclaim the virtues of Hayek should have brought us here.

      If the money were well spent on public services, then that would be otherwise, but, I mean £6,600 per DAY for all these “consultants”, on matters of which they cannot possibly have any experience – since covid19 was a first time for all of us?

      1. Know-Dice
        August 24, 2021

        MiC agreed – In my book and my experience, I will go along with the old adage – a “Consultant” is someone who borrows your watch to tell you the time, and then keeps the watch” …

        I will generally exclude medical consultants from that though…

        1. Micky Taking
          August 24, 2021

          Although I had to point out to a GP a particular drug was reported (dear old Google) to be involved in certain (not good) problems, and there was a perfectly good alternative (probably cheaper) – GP readily agreed to change. Sometimes clinical research is not available to GPs who frown on us pawns wanting to know if these potions are wise!

        2. Peter
          August 24, 2021

          Medical consultants on medical matters OK. I worked for the NHS for a while and we had the Private Eye famed individual who used an offshore Company to funnel all his fees and he came in and said we ought to cut spending by a bit more! His fees were larger than we ever saved!!

      2. Richard II
        August 24, 2021

        Agreed, MiC, especially as we DID have experience of Neil Ferguson and his four-times-failed predictions of vast numbers of deaths (BSE, SARS, Swine flu, MERS). Why consult him yet again, you might wonder?

        And even if we needed to spend so much money on what was arguably a new situation, it would have been better to have paid for a wider spread of expert opinion on the Covid response, including many less extreme ones.

        1. John Hatfield
          August 24, 2021

          Exactly Richard. Definitely something funny in wood shed there.

      3. NickC
        August 24, 2021

        Martin, Even by your own admission the problem is a surfeit of government – the “tax collectors” always cream off more money than their due and have done for thousands of years. That’s why Hayek was right – fear avarice and greed are part of human nature, and that’s bad enough in private industry, but it’s devastating when a government monopoly.

        1. MiC
          August 24, 2021

          No, it is not a matter of quantity, but of quality, of being a certain type.

          1. Peter2
            August 24, 2021

            A reduction in in quantity and an increase in quality is to be warmly encouraged.

          2. NickC
            August 25, 2021

            No, it’s a matter of acknowledging human nature, Martin. Your idea that if only the “right” system or ideology (in your case, state socialism) can be forced on people, then everyone will be magically altruistic is totally false, and has been for thousands of years. Utopianists gave us the gulags.

          3. MiC
            August 25, 2021

            Yes indeed Nick.

            Human nature means that if you can get away with falsifying records as to how much sewage you discharge into the rivers and seas, or as to the fire-resistant qualities – if any – of the cladding that you manufacture, or as to the airworthiness of a new plane, or sell old horse meat as beef, and thereby make more money for yourself, then many people will do absolutely that, as we have seen.

            The purpose of the private sector is simple and a single one – to make money. Providing whatever service or product is an undesirable overhead, to be done as cheaply as possible.

            Very careful thought is needed before engaging it on the public’s behalf as to where that would be proper, therefore.

            It works well where the quality of the product is self-evident, and there is plenty of competition, e.g. in restaurants, bars, speciality food and drink, and in the making of designer clothes.

            Where corner-cutting easily can be concealed however, the story is very different.

          4. Peter2
            August 26, 2021

            There are severe penalties for doing the things you give as examples MiC
            Prison time for Directors and huge fines.
            As well as a ruined corporate reputation.
            And a company can lose its licence to operate in certain industries.
            So despite a tiny number who might do illegal activities, private businesses operate fairly and legally in nearly every instance.

  2. Oldtimer
    August 24, 2021

    It would help if Ministers did not waste our money on hare brained schemes. I read that the Business minister is considering whether to incentivise the manufacture of heat pumps. Cameron did this by “guaranteeing returns” to investors in solar farms for which consumers now pay for through the nose. If someone is smart enough to come up with an efficient solution that actually works and is affordable then the market will finance it and consumers will buy it. Government ministers, spending others people’s money, will be sure to waste it.

    1. alan jutson
      August 24, 2021

      +1

    2. Sea_Warrior
      August 24, 2021

      I agree. The government support for solar-panels, a few years ago, seemed to push up prices far beyond what they would otherwise have been. When the support was withdrawn, the price collapsed – as anyone with an ounce of brains could have foreseen. Kwarteng is proving to be a big disappointment at Business. I think that Sharma preceded him there; he seemed much better.

      1. dixie
        August 24, 2021

        It wasn’t a withdrawal of support it was an increase in taxes – a combination of EU trade tariffs on imported PV panels and the UK increasing VAT from 5% to 20%.

    3. claxby pluckacre
      August 24, 2021

      Heat pumps , Oldtimer , are a complete waste of electricity. I know of a domestic installation that draws 70 amps on starting…that required an industrial 3 phase supply fitting at great cost.
      70amps equals an average of 10 kettles.

      1. Micky Taking
        August 24, 2021

        How many house owners are going to install 3-phase?

      2. Lifelogic
        August 24, 2021

        Yes but that is only on start up.

        But I agree to be efficient they need larger more tepid radiator and use expensive electricity rather than gas. So even if you do get 3KWH of heat for each 1KWH of electricity they still make no economic sense. Retrofit can easily cost £50K for a decent house and still costs far more to run and maintain than a £5K gas system. Quite likely to need an expensive upgrade to the electric supply too and digging up of the garden for the heat source.

        1. Beecee
          August 24, 2021

          What garden?

          1. Lifelogic
            August 25, 2021

            +1

    4. Mitchel
      August 24, 2021

      There was a very good episode of RT’s Renegade Inc last night-part two of an interview with Professor Richard Werner,perhaps most famous for developing Quantitative Easing in Japan.I’ve seen him interviewed before elsewhere and he’s always worth listening too.I’ll try and catch part one tonight.

      One of the points he made repeatedly is how Stalinist western economies now appear to be with G7 central bankers acting as the politburo.

      A point I have made here in the past in response to those who tell us Brexit (by itself)was going to allow us to take back control and why projects like HS2 are not going to be cancelled(it’s in the five year plan,stupid!).

    5. Nota#
      August 24, 2021

      @Oldtimer – agree. All subsidies/handouts are just ways for people that can afford things being given money by those that cant. – sheer lunacy.

      The UK taxpayer as you say does that with solar panels, battery cars, even the electricity supply to the home has a guarantee by Government who will make up the difference if suppliers cant make mony on the open market.

      It needs turning on it head, Government secured loans maybe. Then the payback and the interest on the loan can be the bank going forward to fund the next effort. UK Governments oh so easily give UK Taxpayer money away, but never actual invest. Although in political double speak they use that phrase. A proper investment is something that creates a tangible return for further reinvestment.

    6. Ian Wragg
      August 24, 2021

      +100.
      It has the makings of the ground nut scheme, that was a total failure.
      I see we are currently Importing 11% of our power and wind is contributing 4.7%.
      That demonstrates the lunacy of turning the country all electric using wind and solar which will mean massive power cuts.
      Net zero will destroy this country and hopefully the liblabcon.

  3. David Peddy
    August 24, 2021

    I am delighted to read that the government will be ‘managing pubic spending ‘
    More importantly and very seriously ,I agree that growth is the way to do it .
    I am disappointed , but not surprised ,to see that the Superinvestment allowance has made no difference to capital spending. It is for too short a time and the disincentive of higher Corporation Tax just around the corner is a major deterrent

    1. Lifelogic
      August 24, 2021

      Indeed also a deterrent is the fact that Boris clearly has an essentially socialist, ever bigger:, top down climate alarmist government.

      1. Nota#
        August 24, 2021

        @Lifelogic +1

        1. Timaction
          August 24, 2021

          Indeed. I see the billion pound illegal immigrant bill got bigger by over 800 in a day. Apparently it would have been 1000 but the French stopped 200. What is this Government doing or thinking? Tow them back, not pick them up. Immediate deportation. No 4* Hotels and free everything. They are just politicians but surely they can see it’s going to get worse unless they take serious actions. 20,000 Afghans, 3000,000 Hong Kong nationals, 720,000 other immigrants annually. 9,000,000 living here not born here. Meanwhile many 1000s of ex servicemen are living rough and are homeless. So who do we think this Government cares about. Immigrants or English people? Answers on a post card.

          1. Lifelogic
            August 25, 2021

            They will keep coming until it is made clear that they will never be allowed to stay. Then they will stop coming. Some sadly even dying in the attempt. Not hard to see this, surely it is blindingly obvious. But the Gov. & Patel choose to do nothing to deter them. Sometimes one just has to be cruel to be kind.

    2. Nota#
      August 24, 2021

      @David Peddy +1 Has anyone told Boris. he still doesn’t get it to spend you first have to have a resilient self-sufficient economy. Then again as a Socialist he has no grasp of logic

    3. Ian Wragg
      August 24, 2021

      Growth will only be achieved by Importing more bodies. G DP will rise but per capita will fall.
      Look how uk wages have risen now the spigot of cheap labour is shut. See the employers moaning because they didn’t invest in automation or train staff.
      Excellent.

  4. Nig l
    August 24, 2021

    As ever, the so called experts we rely upon have got it massively wrong. Memo to politicians, quoting experts to avoid blame/taking the decision yourself merely emphasises how weak/inept you are.

    Agree entirely about what they need to do but it’s one of your recurring themes. Until you follow up with informing us of the progress made, I will take it that nothing is/has happened.

    Good article in the paper about the talent available to Boris in a reshuffle. Until he gets rid of the faceless stodge currently allegedly running the country nothing will change.

    Now that is a future topic for you and something to push for that would make a real difference.

    1. MiC
      August 26, 2021

      What do you mean “as ever”?

      Thanks to experts we have everything from vaccines – which save millions of lives – to mobile phones to air travel.

  5. Sea_Warrior
    August 24, 2021

    I still cannot fly with confidence, Sir John – and that means that Sunak is being denied something like £2000/year in taxes from me alone. And none of my extended family feel like risking flying abroad right now either. Javid has got off to a good start at Health, injecting energy (and common-sense) into decision-making – but he now needs to kick down Shapps’s office door and get our airports buzzing again. That would improve the public finances substantially.

    1. Nota#
      August 24, 2021

      @Sea_Warrior nearly +1 Spending money in foreign climes, means flying with foreign domiciled airlines(there are no UK Airlines), spending money in foreign tax regimes and so on. So it could be said that’s not be helping the UK exchequer/economy either

      1. Fedupsoutherner
        August 24, 2021

        What about those jobs in the travel sector? I’ve just had a holiday that was cancelled this year cancelled again today for next year. How can travel agents carry on like this? There are thousands of jobs in the airline industry that are at risk and that won’t be good for the UK economy.

  6. Newmania
    August 24, 2021

    The recovery has been bouncier than expected because avoiding the consequences of Brexit has been at the heart of every decision the government has made. By avoiding I mean “putting off until later when they can make up some story “.
    The biggest lever has been to make you and I borrow ever more money, (National Debt is now 97% of GDP )t .Equally important has been letting the construction industry tear into our beautiful countryside destroying sacred fields and valleys with cheap nasty developments which help no-one . Britain’s construction sector has had its sharpest pick-up in activity since 2014 hence the figures Redwood smugly announces.
    I live in an area famed for its beauty for centuries. We are now bracing ourselves for the arrival of a 30,000 unit development waved through to save political careers. People are between tears and rage
    You need be in no doubt that the blame for this will be fairly pinned on the Brexit MP who sold the whole rank deal in the first place.

    When we hew or delve:
    After-comers cannot guess the beauty been.
    Ten or twelve, only ten or twelve
    Strokes of havoc unselve
    The sweet especial scene,

    There is no free money and the price for this “recovery ” is the worst yet

    1. NickC
      August 25, 2021

      Newmania, If you were correct, then every other country in the world would be in dire straits because they weren’t in the EU. How well the UK does outside the EU empire (a mere political arrangement) is up to us. But your contention that being absorbed by the EU is essential for the UK is obviously absurd. And the rage to build is a direct consequence of importing c10 million extra people over the last 20 years. When did you oppose such immigration?

      1. MiC
        August 25, 2021

        Don’t be silly Nick.

        Never-member countries are not in the parlous position of wrenching themselves by the roots from a mature, developed market and trading set-up which has evolved over forty years.

  7. Roy Grainger
    August 24, 2021

    They interviewed Ferguson and asked about his hopeless Covid model predictions and he said “I don’t mind being wrong but in the right direction” by which he meant if he predicted 400k deaths and there were 100k then that is fine, but vice versa isn’t.

    Same with the OBR it seems – pump out inaccurate gloomy predictions then everyone is so pleased when the are wrong they don’t give you any grief over your bad predictions. This ignores the fact that policy has been developed based on bad predictions.

    See also Climate Change.

  8. Rhoddas
    August 24, 2021

    And we have too much government and wokey quangos, like a hydra, its impossible to really cut off its expansion… but it needs to happen!

    1. Nota#
      August 24, 2021

      @Rhoddas – Ah, but we have a Government that doesn’t give a ‘fig’, has no interest in a strong UK economy. As long as they can keep on giving well paid jobs to chums and grandstanding with a virtue signal they believe that is all that needs to be done.
      The UK desperately needs a Conservative Government, accept for a handful of MP’s most that say they are do not understand what that means.

  9. Lifelogic
    August 24, 2021

    We do indeed need more and faster growth to bring down the deficit. But the Boris and Sunak agenda (now entirely in step they claim) is huge hikes in tax and tax complexity, even more regulation, pissing money down the drain on nonsense almost everywhere one looks (HS2, furlough, student loans for worthless degrees
) and, to cap it all, the insane (and insanely expensive) net zero carbon agenda. Sunak’s first moronic act (even before Covid) was a 90% cut Entrepreneur’s CGT relief.

    So the complete opposite of what is required to get good growth. Then on top of this we get fairly dire, declining and second rate public services like the sick joke rationing system NHS and most of education. Much or even most of the state sector does far more harm than good.

    1. hefner
      August 24, 2021

      This Entrepreneurs’ Relief (reduction of the amount of Capital Gain Tax on the disposal of a qualifying business, a nice little earner for people in the property business with good accountants) 
 so the ER had been £1m from its creation on 6/04/2008 till 5/04/2010.
      Just before the 2010 GE, it was set at £2m (from 6/04/2010 to 22/06/2010).

      As soon as elected the Coalition moved it to £5m (from 23/06/2010 to 5/04/2011).
      Then as there were still ‘entrepreneurs’ crying warm tears, it was again increased to £10 m (from 6/04/2011 to 10/03/2020).
      NB: that’s a factor 10 increase over 3 years when the inflation for most people had been such that on average £100 in 2008 had become £168.48 in 2020, a factor 1.7 over 10 years for us mere mortals.

      Maybe the Chancellor realised that such a discrepancy, specially as the first effects of the pandemic were starting to be felt, was simply ‘a gift too far’ as he was likely to be in need of money very soon.
      And the Entrepreneurs’ Relief went back to £1m on 11/03/2021.
      Obviously the feathers of some useless birds have been ruffled, but was it not for a good cause?

  10. Richard1
    August 24, 2021

    certainly we need to lift covid restrictions and of course cut waste. but we also need radical supply side measures, to boost UK competitiveness entrepreneurship and innovation. We do not see this from the Conservative govt. OK, they have been knocked sideways as have all other govts by the covid crisis. but the clock is ticking and we need to see the govt attempt to take advantage of those freedoms which the Leave side claimed would be available in the brexit referendum. lets see action on reforming onerous EU-driven regulation where it is not optimal for the UK (Mifid2, GDPR, probably Solvency 2 etc). Lets see radical simplification of the tax system and its processes – take the Baltic countries as a model to aim for. Action is needed. there is far too much big govt intervention. We will not win the next election by posturing and pandering to the left – they will never vote for us anyway. The govt must expect to be judged based on its results not on its utterances and gestures.

  11. Narrow Shoulders
    August 24, 2021

    Savings from the Afghan occupation being ploughed into paying for those who capitulated to come here.

    Why don’t we just take the savings without the spending?

    It is our money that is either being over taxed or taxed through inflation to negate government debt. Covid support is no longer required – run a surplus!

  12. Mike Wilson
    August 24, 2021

    And still, all day – every day, massive waste of public money takes place. The attendance allowance at the House of Lords is still £350 just for turning up and signing in. £200 million is found to build a silly boat.

    Read Margaret Hodge’s book ‘ Called to Account: How Corporate Bad Behaviour and Government Waste Combine to Cost us Millions.’ and weep. She was chair of the Public Accounts Committee 2010-2015 – so she knows what she is talking about.

    1. Micky Taking
      August 24, 2021

      It will not be ‘a silly boat’ -a lovely rich man’s pleasure craft for PM’s mates.
      Those who cannot get on a billionaires monster, but can enjoy relative luxury.

    2. Cheshire Girl
      August 24, 2021

      800 migrants came over the Channel last Saturday. That must have cost. Twelve and a half million people already this year have come in.
      The poor old taxpayer (including me) is expected to bear the burden, without being asked their opinion.

    3. Nota#
      August 24, 2021

      @Mike Wilson – the House of Lords Attendance allowance £350 per day. The UK basic pension if there has been more than 30 years contribution = £137.60 per ‘week’. Only in the UK could you get such a perverse disparity.
      Then to add insult to those already on that amount there are mumbles to stop the increase as a £137.60 per week is to much, how much has the State payment to the HoL risen, how much has MP’s pay risen by.

    4. Sea_Warrior
      August 24, 2021

      The biggest waste of money right now is Patel’s ministerial salary.

      1. Timaction
        August 24, 2021

        +1

  13. Christine
    August 24, 2021

    Why are we still funding the furlough scheme when employers are crying out for staff?

    From March to September it is estimated to cost £66 billion.

    Why are people not back at work now restrictions have been lifted?

    1. ChrisS
      August 24, 2021

      Exactly ! The Furlough scheme should have been wound down as job vacancies climbed.

  14. Andy
    August 24, 2021

    How much is Ian Botham being paid to be a ‘trade envoy.’

    His qualifications for the role are nil but presumably he gets regular taxpayer funded holidays to Australia.

    A cushy job if you are a Brexitist.

    They obviously couldn’t get an actual trade expert to do it as none of them would want to be associated with such a pathetic project.

    Meanwhile photocopy Liz is back from holiday and distributing press releases to the newspapers about all these remarkable trade deals she is going to do. Maybe one day one of them will be better than what we had before – just clearly not yet.

    1. Sea_Warrior
      August 24, 2021

      There you go again – but I’ll agree with your opening one and a half sentences.

    2. ChrisS
      August 24, 2021

      Andy, it would have taken you a couple of mouse clicks to find that the role of Trade envoy is unpaid.
      But I suspect you knew that already : it was clearly stated in several of the articles about his appointment.

      Trade Envoys are all about visibility. For Australia, “Beefy” is an inspired choice. What higher profile trade envoy could there be Down Under than one of England’s greatest cricketers?

      1. alan jutson
        August 24, 2021

        Chris S

        Would happily agree with your second paragraph, he will open more doors in Australia than Prince Andrew ever would, and once the door is open it is up to the traders and trade experts to do the talking and reach an agreement.

      2. Peter Parsons
        August 24, 2021

        One suspects that Botham will not be paying for his own flights and hotels (and probably not flying economy or staying in an AirBNB), and therefore Andy’s comment is a fair one.

        1. Peter Parsons
          August 24, 2021

          Furthermore, Botham said he would only involve himself, in his words:

          “when they are debating something I know about – like sport or the countryside. Not much point if it’s a trade deal with Japan.”

          One wonders how much more like the countryside or sport a trade deal with Australia is compared to one with Japan…

        2. Peter2
          August 24, 2021

          He may well bring in extra trade worth millions by his efforts and create hundreds if not thousands of jobs.
          Let’s wait and see.
          He is highly respected and liked in many nations that know him.

    3. glen cullen
      August 24, 2021

      Trade Envoy = Free Holiday

      If an outcome isn’t measureable or doesn’t realise a profit….its a holiday

    4. NickC
      August 24, 2021

      Andy, Leaving the EU was all about taking back control. We decided, on balance, that we didn’t want to be a colony of your EU empire any more.

  15. Micky Taking
    August 24, 2021

    More than 800 migrants crossed the English Channel to the UK on Saturday – setting a new record for crossings in a single day. The Home Office said nearly 200 people making the trip were also stopped by the French authorities. Nearly 12,500 people have made the journey so far this year.
    Officials say there are safe and legal routes for migrants and they were working with international partners to tackle the “dangerous crossings”.
    The Home Office said the UK authorities rescued or intercepted 828 people in 30 small boats on Saturday, while the French prevented 193 people in 10 boats from reaching Britain.
    How can this ‘regularly drop the ball’ Government tolerate this day after day?
    Don’t the 80 majority Tory MPs care?

    1. Andy
      August 24, 2021

      If I were in government I could end the channel dinghy crossings tomorrow.

      How? By establishing safe, legal routes for people to claim asylum instead.

      It genuinely is no harder than that.

      These people are only risking their lives because the party you vote for forces them to. They don’t have an alternative. You don’t risk your life in a dinghy unless it is the least worst option you face.

      When a bunch of kids drown in the Channel, which eventually they will, it will be on the shoulders of every Conservative MP and the minority who vote for them.

      Personally I think a policy which risks kids drowning, even if they are foreign kids, is completely abhorrent.

      1. Peter2
        August 24, 2021

        They are safe in France.
        They are economic migrants.

      2. Glenn Vaughan
        August 24, 2021

        “If I were in government….” Andy
        No chum – not even in the Twilight Zone!

      3. jon livesey
        August 24, 2021

        “By establishing safe, legal routes for people to claim asylum instead.”

        Which none of these boat people could use because they are not genuine asylum seekers. Now what?

      4. No Longer Anonymous
        August 25, 2021

        The government would dearly love to set up a free ferry service, Andy. It knows it can’t because there would be no borders, no country and therefore no need for government and politicians.

        Rest assured the Tories are on your side.

        1. No Longer Anonymous
          August 25, 2021

          PS, Andy

          Are you absolutely sure that this wave of migrants will not result in the accidental death (illegal drivers) murder and malicious injury of British children (of any race) ???

          You can’t have it all your own way regarding the safety of children. One way or the other (maybe both) kids are going to get killed.

          Andy, why aren’t you blaming the adults who put them in unseaworthy dinghys from a safe shore ?

          The more of these crossings the better. It is showing everyone the true nature of the Tories.

          1. No Longer Anonymous
            August 25, 2021

            PS

            Just got back from work. 5am having started at 6.30 pm last night (30 minute commute.)

            Six of these shifts this week.

            I bet I work harder and longer than you 😉

    2. Mike Wilson
      August 24, 2021

      What happens if the French stop people? Presumably they come the next day. Now that it is known that crossing the English Channel in a boat is a certain way of gaining illegal access to the UK, they must be getting ready in their millions.

      Odd, Andy, that they have to pass through your sainted EU, but they choose Brexit Britain over lovely EU France.

      I see people on our no-fly list are on their way. It will be great to have something other than the virus on the news – when the ISIS members amongst them execute some terror attacks here.

      1. MiC
        August 24, 2021

        Only a few percent of the seven figure number who have entered Europe irregularly want to come to the UK.

        1. Peter2
          August 24, 2021

          Many hundreds a day times 365 days per year is a lot of new arrivals.
          Currently the government net immigration figure is 300,000 per year.
          A city the size of Southampton needs to be built every year since 1997 to meet the created demand.
          Which we are not doing.

        2. No Longer Anonymous
          August 25, 2021

          MiC

          And few ordinary people in Europe are happy with the situation either. Indeed it is the loose bordered EU which has enabled it to flourish.

          The EU is responsible for this situation.

          1. MiC
            August 25, 2021

            What do you expect the Greeks to do with crowded rickety boats full of people coming ashore?

            Machine gun them?

            The European Union successfully engaged with Turkey to get them to restrain the flow.

            Your post is incorrect. It was UK and US action which precipitated the crisis too.

      2. acorn
        August 24, 2021

        Probably something to do with them having learnt a lot more English than French, ne penses-tu pas?

        1. No Longer Anonymous
          August 25, 2021

          The sort of linguistic flourish one would expect from Andy, the owner of a translation company. .. he claims.

      3. turboterrier
        August 24, 2021

        Mike Wilson
        Execute some terror attacks?

        When and if they do, I hope that the PM and all his cabinet resign en mass and never darken the halls of Westminster ever again. But this lot will never do anything honourable it’s not in their DNA.

        1. Timaction
          August 25, 2021

          Honourable= Boris………………………never! Look at his private life!

    3. Iain Moore
      August 24, 2021

      I am finding it difficult to take much interest in the budget deficit when the British establishment are trying to do everything they can to break our country under the weight of mass immigration. Why bother with a future debt when you seriously doubt our country can survive the cultural instability they are importing.

      Sir John, with many thousands of British people in need of a home are you happy with the way Government and Councils are putting Afghans at the front of the queue ? I really do think you lot are asking for a revolution.

      1. Fedupsoutherner
        August 24, 2021

        I find it repugnant.

        1. Fedupsoutherner
          August 24, 2021

          How csn tge BBC go on about long NHS waiting times and not enough mental health places and then avidly support all this immigration?

    4. alan jutson
      August 24, 2021

      M T.

      Indeed I think I need to revise my suggested 15,000 in a year estimate of only last week up to 20,000 if this trend continues.

      Border force, Taking control, What an embarrassment, and a complete farce

    5. Cheshire Girl
      August 24, 2021

      No, they don’t. And neither does Labour. There are fully signed up, as they know it means more votes for them,

    6. glen cullen
      August 24, 2021

      The French police didn’t notice a flotilla of 800 people embarking from their beaches
      The French maritime police didn’t notice the launch of a flotilla from their shores heading towards England
      The French surveillance didn’t notice a flotilla leaving their territorial waters
      The UK surveillance didn’t alert the French authorities about a flotilla heading towards our shores
      The UK Border Force collected and gave save passage to the illegal flotilla
      The UK Home Office alerts 4*Hotels to get ready to accept 800+ people
      The UK people….mugged

      1. Fedupsoutherner
        August 24, 2021

        Glen. You’ve summed it up well. It’s obvious this government has no serious intention of stopping any of this. I have no words to describe my disgust.

    7. The Prangwizard
      August 24, 2021

      I am sticking to my forecasr of 50,000 illegals across the Channel by the end of the year. I do not believe there have been 12,500 so far. We are being lied to and deceived as usual. Our leaders are behaving much like Mafia bosses.

      1. Fedupsoutherner
        August 24, 2021

        There will be no hotels with vacancies soon.

    8. NickC
      August 24, 2021

      Micky, Like the Northern Ireland Protocol, the government only takes any interest in illegal migrants when there’s a fuss in the media. As soon as there is, the nudge units and Ministers are trotted out to threaten a “crackdown”. When the news cycle moves on, the government goes back to sleep. Rinse and repeat.

    9. Timaction
      August 24, 2021

      Why aren’t they being deported. What are they hiding. Change the law and get rid of them. Sick of this former conservative Government.

  16. bigneil - newer comp
    August 24, 2021

    828 9n 9ne day – Saturday -and she says nothing – and still keeps her job and wage?DISGUSTING Those alone have already cost us 5 million+. More people, more cost.

    1. ChrisS
      August 24, 2021

      It is impossible to stop the flow unless the French put some backbone into it. Given Macron’s hatred for our Country and its PM, that ‘aint going to happen. We can’t legally force the boats back into French waters.

      Our only way forward is to adopt the Australian method of sending the migrants straight to a third country for processing. 90% will be found to be economic migrants and the rest can be refused for entering our country illegally when they were already in a safe haven. When they realise this is the inevitable outcome, the whole miserable trade will end almost overnight.

      Ms Patel is evidently in discussions in conjunction with Denmark and a couple of African countries with a view to establishing a joint reception centre there. I would much prefer to hand over £54m to a Commonwealth Country for services rendered than giving it to France for services that will never be delivered.

      If only Ms Patel and Boris are resolute enough to ignore the bleeding-heart liberals on the Conservative benches and the combined opposition of the whole of the liberal/left, the problem can be solved at a stroke.
      The Government’s standing in the polls will immediately soar, especially in the Red Wall seats and the more Starmer and Co object, they further they will fall behind.

      With the numbers making it across the channel, it can’t happen too soon.

  17. Everhopeful
    August 24, 2021

    No economist
ghastly subject.
    However, it always fascinates me how ( if I understand it at all) govts can only borrow (create money/debt?) in their reckless way because we have a fiat currency. So fractional reserve banking is possible
.xxxxx£££££££££££s plus many, many noughts.
    Govts would be stuffed if our wealth still resided in Drummonds Bank in the form of gold plate etc.
    Of course, naturally, the state managed to steal that early on by the printing of notes.
    And now it looks as if our hugely inflated notes are going West too!

  18. Christine
    August 24, 2021

    There are so many areas where the government could save money but they choose to tax the hard-working people of this country as we are an easy target.

    1. Andy
      August 24, 2021

      How are you hard working? You’re retired – right? Doesn’t that literally involve not working?

      1. MWB
        August 24, 2021

        Retired means that you have worked for many years and then stopped, because you reached retirement age, you moron.
        Do you work, and will you one day retire ?
        You seem to spend a lot of time posting your silly comments here.

      2. Christine
        August 24, 2021

        Wrong again Andy. I’ve been working 60 hours per week for the last 5 weeks. This is why I haven’t been reading John’s diary very much, unlike your good self who seems to have lots of spare time to read and reply to the comments here. At your age, I would never have had time to indulge in this site so what exactly is your job that allows you this luxury?

      3. SecretPeople
        August 24, 2021

        Even if Christine is not currently working (a snapshot in time), her observation is no less true.

      4. No Longer Anonymous
        August 24, 2021

        I’m in the middle of a 60 hour week. Night shifts.

        1. No Longer Anonymous
          August 24, 2021

          I’m talking start and finish times even a farmer would find tough.

      5. Mike Wilson
        August 24, 2021

        If you worked hard for 48 years, I think you can call yourself ‘hard working’.

      6. NickC
        August 24, 2021

        Did Christine literally claim to be hard working, Andy? You just seem to literally react to key words without bothering to literally understand what’s being said. Shouldn’t you be squandering your non-working time defending your EU mafia?

      7. Fedupsoutherner
        August 24, 2021

        Andy. You don’t seem to be working much. Christine has already done her work if she’s retired. That’s a lot more than many who will still get their pension even though they’ve not managed to get their bum off the mattress before midday and often then only to pick up their ‘wages’ that they feel ‘entitled’ to. You really come across as a spoilt silly boy at times.

      8. jon livesey
        August 24, 2021

        As opposed to what, exactly? To people who spend all day mouthing off about the wonders of the EU?

      9. jon livesey
        August 24, 2021

        Are you asleep this morning? You are making one logical blunder after another. The taxman takes taxes on your income no matter what. He does not ask if you actually went out to work this morning.

        And just to help you out a little bit on the logical front, if you have a “passive” income, pension or investments, that income comes from hard work you did in the past.

        1. Fedupsoutherner
          August 24, 2021

          Jon. Idiot. I was referring to those who never work and don’t get out of bed to do anything except pick up their benefits. My husband went to plenty of homes where the out of workers were still in bed at lunchtime. He was a heating engineer. He had to call later when they could be bothered to get dressed.

      10. Micky Taking
        August 24, 2021

        some of us volunteer. You know -doing things to benefit all age groups – all for free.

        1. alan jutson
          August 25, 2021

          +1

  19. GilesB
    August 24, 2021

    We need more investment that directly boosts productivity and creates quality jobs.

    Housing, hospitals, schools etc for a growing population are consumption not investment. Any construction jobs involved are only temporary.

    Industrial equipment upgrades and better commercial transport infrastructure improve productivity and enable the creation of real new jobs.

    1. Nota#
      August 24, 2021

      GilesB – HS2 is seen by this deluded shower as their contribution – while the rest of the network stays stuck in history with no way out. Hs2 will save 10mins on the journey time, the catch is you first have to get to Old Oak Station(West London) at one end and Solihull the other. So not 10mins centre to centre

      1. Micky Taking
        August 24, 2021

        both locations are known epicentres of critical business for movers and shakers.

    2. NickC
      August 24, 2021

      We would improve productivity with cheaper energy. But Boris wants to at least triple energy costs. Go figure.

    3. jon livesey
      August 24, 2021

      “Housing, hospitals, schools etc for a growing population are consumption not investment.”

      Wrong. Completely and utterly wrong. About as wrong as it could be. Anything that makes the working of the economy more efficient is investment. Roads, railways, bridges, schools, hospitals, universities, research labs and all the associated wages are investments.

  20. Andy
    August 24, 2021

    There’s an interesting story in the FT today about quality marks. Basically the European Union has the CE mark to show a product meets European standards. It takes some effort and expense for a manufacture or producer to demonstrate this but once they have they can sell across the EU, EEA, associated micro states and some others too. More than 40 countries in all.

    The British government intended to introduce its own quality mark a U.K. mark this year but has delayed it because of the huge amount of extra bureaucracy involved. UK manufacturers now have to jump through hoops to prove their product meets UK standards. But the new UK mark will be valid just here. The process is so far behind the government has had to delay it.

    Worse, very few European companies are bothering getting UK marks for their products – it isn’t worth the bureaucratic hassle for one small market. So those products won’t be available here.

    Another Brexit win Mr Redwood. Far more bureaucracy for businesses and less choice for consumers.

    But Brexit

    1. Peter2
      August 24, 2021

      Not quite right Andy.
      As a manufacturer selling goods in the UK you can use the UKCA mark or continue with the CE mark until January 2023.
      It is applied by the manufacturer to confirm the goods meet applicable regulations and requirements for that product to be sold in the UK (or Europe if CE marked)
      It is effectively a declaration of conformity.
      Remember most UK companies only trade inside the UK so would only want to show UK conformity markings.

      European companies wishing to sell in the UK after January 2023 will need to mark their products as conforming to UK requirements.
      To claim manufacturers in Europe (eg BMW VAG Siemens Mercedes etc) will not simply mark their products as confoming to requirements and will refuse to sell into one of their biggest markets is one of the most ridiculous things I have ever read on here.
      If you sell into any export markets you have to show your goods meet the many different requirements of that market and it something businesses do as a routine process and have been doing for decades.

    2. jon livesey
      August 24, 2021

      I predicted that you would make this logical blunder, and here you are. If goods made in the UK to UK domestic standards qualify to use an EU mark as well, that shows that the EU mark does not indicate extra quality. In fact it shows that the UK quality mark is as good or better.

      This is an interesting comment on your and MiC’s constant refrain that the UK produces “inferior goods” that the EU has to be protected against.

    3. jon livesey
      August 24, 2021

      “But the new UK mark will be valid just here. ”

      That is completely wrong, as usual. The UK quality mark will be applied to all UK exports, and if you actually knew what a quality mark is, you would expect that.

      You would not expect to find an EU quality mark on a Japanese manufactured car, or a German mark on a South Korean car. Why not? Because then you would be reporting any defects to the wrong agency! Why would you report a defect in a Japanese manufactured car to the EU, or of a Korean car to Germany?

      A UK quality nark on UK exports is a guarantee to the buyer that the UK or a UK company will stand behind its export quality. An EU quality mark is completely irrelevant because the EU can’t do anything to back it up.

    4. Mike Wilson
      August 24, 2021

      Companies in the EU aren’t bothering to get our quality mark? Not worth the effort? Biggest Brexit bonus yet! That £85 billion trade deficit is going to disappear. Happy days.

  21. Nig l
    August 24, 2021

    And in other news we see the virtue signalling hand wringing over the Taliban and denial about the role of Pakistan.

    How convenient to forget the 20 billion funnelled through it (president Zia) by the CIA to the Mujahadeen to fight the Russians not forgetting the money they got from the Russians buying back the stinger missiles given to them by the US because they were so effective. So we arm the people for political purposes who become our enemy and kill our soldiers with weapons we have (indirectly) supplied.

    One of the key drivers even back then was the opposition to Russia’s drive to educate girls.

    Equally the west’s imposition of a central government model when traditionally it was regional, no joined up post Taliban planning and turning a blind eye to the endemic corruption, one of the main reasons so many the ordinary Afghanistani supports the Taliban despite the propaganda we are being fed.

    Hubris and shame. The west can have no moral skin in this game whatsoever,

  22. Bryan Harris
    August 24, 2021

    Are we talking more government department incompetence, or is this a case, as identified before, that elements in central government are deliberately working against the best interest of the UK?

    The OBR badly needs to get its sums right for those that pay tax who are already burdened enough, without them giving the Chancellor more excuses to rob us blind.

  23. Everhopeful
    August 24, 2021

    And every day more and more dependents are being allowed to enter the country illegally.
    What’s the bill for 800 hotel rooms plus food?
    Especially at the rates our idiot government is no doubt being charged.

    1. Andy
      August 24, 2021

      It isn’t illegal to enter the country by dinghy if you’re claiming asylum. Indeed, if you’re claiming asylum you can arrive how you like without any documentation.

      1. SM
        August 24, 2021

        What about the many economic migrants, and if the UK is as awful as you make it out to be, why are they aiming for it anyway?

      2. Everhopeful
        August 24, 2021

        Oh
.ok then!
        Go on
..get your dinghy and see how well your sudden arrival in France goes down.
        I suppose you’d have to say something like “ Je ne suis pas impliquée dans une quelconque activité illégale.” ( check that out just in case
you need to get it right!).
        Bonne chance m’ami!

      3. MWB
        August 24, 2021

        Where are they claiming asylum from, France ?
        Are you saying that France is a war zone ?

      4. MiC
        August 24, 2021

        However, if your claim is found to be groundless, then at the point of determination your residency becomes unlawful.

        If you knew that your claim was groundless, then you did enter illegally too, but that would often be hard to prove.

      5. No Longer Anonymous
        August 24, 2021

        Yes it is.

        You are meant to claim asylum in the first safe country you arrive in.

        1. hefner
          August 25, 2021

          NLA, MWB, SM, EH, et al.: there is no legal requirement, no obligation explicit or implicit, for refugees to claim asylum in the first safe country they reach.
          Contrary to what you and others on this blog keep repeating, refugees do NOT have to claim asylum in the first country they get to. You were told numerous times, with reference to the various Geneva Conventions, to the Dublin 1, 2, 3 texts. But given that very likely you never took the time to read the UNHCR 1951 Refugee Convention (‘the Geneva Convention’), the 1967 Protocol, nor any of the subsequent texts, you go on with your half-thought meaningless babble 


          And now the UK, being out of the EU, can no longer use the Dublin documents (on commonslibrary.parliament.uk ‘Brexit: The end of the Dublin III Regulation in the UK’, 21/12/2020).
          What is applied is on gov.uk ‘New Immigration System: What you need to know’, last update 1/07/2021.
          Re: Afghanistan et al. ‘UK visas and immigration: Latest documents’.

          And I already see the usual culprits exercising their little grey cells and talking about refugees vs displaced persons vs economic migrants vs. 


          If people can reach the UK, however they do it, they can ask for refugee status, and it is the responsibility of the relevant UK agencies to prove they are not entitled to such a status.

      6. Micky Taking
        August 24, 2021

        Honest threatened people seeking asylum would want evidence, wouldn’t they?

      7. Cheshire Girl
        August 24, 2021

        Well, that should change. It is being abused.

      8. Mike Wilson
        August 24, 2021

        Funny how they don’t like the EU countries they pass through.

        1. MiC
          August 24, 2021

          All but a few percent do.

          It would be surprising if there were no one at all who wanted to come to the UK.

          1. Peter2
            August 24, 2021

            A few per cent of millions requires a new town to be built every year.

          2. MiC
            August 25, 2021

            Yes, but you accept that far from “all” of them want the UK – quite the reverse – and that there is therefore absolutely nothing wrong with the other countries.

      9. NickC
        August 24, 2021

        It is illegal, Andy. They could claim asylum in France.

        1. MiC
          August 25, 2021

          Why do you keep making this false claim?

          The fact that they could claim asylum in France or in many other countries does not make it illegal to do so here.

      10. Fedupsoutherner
        August 24, 2021

        Andy. With this amount of people invading it’s not looking good for your children and grandchildren is it?

        1. Mike Wilson
          August 24, 2021

          @Fedupsoutherner

          Good point. Not only does poor old Andy have to pay our triple locked pensions – and the pensions of the UKIP ex MEPs – and pensions of retired Tory MPs – he has to support all the asylum seekers too. Fair play to him. A prince amongst men.

      11. jon livesey
        August 24, 2021

        More logical blunder from Andy. You are making it quite a day. You are confusing *claiming* asylum with qualifying for asylum.

        None of these people qualify for asylum no matter what they claim, since they have passed through multiple perfectly safe countries on their way to the UK.

        The biggest source country for these boat people is Iran. Iran! Nobody sails directly in a dinghy from Iran to the UK!

        These are not genuine asylum seekers.

        1. MiC
          August 25, 2021

          You repeat this rubbish endlessly.

          Please read and remember this.

          Under the rules set out by the UN Refugee Convention, which the UK joined in the early 1950s, there is no obligation for asylum seekers to claim in the first “safe” country that they enter.

          Full Fact, an organisation that examines and debunks false information, states that UK case law supports this interpretation of UN rules – meaning asylum seekers can pass through other safe countries before making a claim.

          Just because a European country such as France or Italy is often perceived as safe for most people, it doesn’t mean that’s necessarily true for asylum seekers – individuals could face any number of dangerous situations we can know nothing about without proper examination of their case.

      12. alan jutson
        August 24, 2021

        How strange that many of these so called refugees seem to have lost or discarded all of their records and paperwork which proves who they are, and where they have come from.
        Many also claim to be children when they appear to be nearer 30 years old.
        Why lie and try and deceive if you are a genuine refugee, surely the whole point is to prove who you are, and why you were in danger if your claim is genuine.
        Most people tell lies when they want to hide the truth.
        They are economic migrants, not actual refugees at all !

      13. Timaction
        August 24, 2021

        BS. Not from a safe Country.

    2. SecretPeople
      August 24, 2021

      All seems to have gone quiet on offshore processing.

      1. jon livesey
        August 24, 2021

        No, it’s just that Kabul is louder. We’ll be back to boat people next week, with twice the numbers of the same month in 2020, which in turn was twice 2019.

        You can work out for yourself what doubling every year means.

  24. X-Tory
    August 24, 2021

    This just reinforces the argument I have made several times, that the government should SCRAP all economic forecasts. They are ALWAYS wrong, and therefore basing your economic policy on forecasts that you KNOW are wrong is just mentally retarded. If you know the forecasts are going to be wrong you are better off not using forecasts at all, and basing your decisions on your own economic judgement and political beliefs. You then look at the actual outcome and tweak your policy accordingly. That would be a much better way to proceed.

    1. Everhopeful
      August 24, 2021

      Plus..I bet all that prophetic argy bargy costs a great deal of money!
      Why, the butcher’s bill for goat entrails alone must run into millions.
      As for all the Tarot cards and crystal balls
well
..

  25. Sakara Gold
    August 24, 2021

    The total of global debt is now at $281 trillion at end of 2020 – which represents 355% of global GDP, according to the recent Institute of International Finance report. This sum is far too big and will never be paid back.

    The government can save money by scrapping political expenditure such as Johnson’s “Leveling Up” fund of £4.7billion, which has been reported today as being directed to exclusively Conservative marginal constituencies. Or even clawing back some of the Hancock and Harding’s Test and Trace £37billion blown on Serco and £1000/day consultants who exploited the Chinese plague virus pandemic to rip the nation off. Or maybe the billions blown on the useless and dangerous lateral flow tests that Hancock bought off his chum down the pub?

    These countries’ central banks have bought large amounts of gold bullion for their monetary and strategic reserves so far in 2021:- Thailand, Hungary, Brazil, Uzbekistan, and India, buying 2.9, 2.02, 2.0, 1.08, and 0.87 million troy ounces respectively. Central banks are buying gold at higher prices than they had in the past. The BoE bought zero gold.

    When the inevitable debt related hyper-inflatory financial collapse happens, those who hold hard assets will preserve their wealth. The rest will be selling “The Big Issue”

    1. jon livesey
      August 24, 2021

      “The total of global debt is now at $281 trillion at end of 2020” The gross amount of debt is meaningless. If you owe me a trillion and I owe you a trillion, gross debt is two trillion, but net debt is zero.

    2. Mike Wilson
      August 24, 2021

      @Sakara Gold

      When this hyper inflationary financial collapse happens, whoever lent the $281 trillion is going to be screwed. Then what? A reset and start again.

      1. Mitchel
        August 25, 2021

        Yes reset and start again but not the same as before.The west will be the new third world and China and Russia (both big trade surplus countries)and their allies with the manufacturing and natural resources under their control will be on top-they will determine what “money” is.

  26. Iain gill
    August 24, 2021

    No raids on pension funds.

    Get the schools open.

    1. Lifelogic
      August 24, 2021

      Brown, Darling, Osborne & Hammond have already decimated pension funds doubtless Sunak will attack the triple lock and mug private pensions pots even further too.

      1. MiC
        August 24, 2021

        Rubbish – Gordon Brown introduced a dividend tax for managed pension funds, just as many countries have. It cost an estimated average of less than a hundred pounds per beneficiary per year, to be met by increased employee and employer contributions. In fact it helped many funds, because they changed their composition away from shares, protecting them from the 2008 crash. The Tories have never reversed it, and it would make little difference to pensions if they did. People went into BTL etc. because of appalling annuity rates, and not because of that.

        1. jon livesey
          August 24, 2021

          “Rubbish – Gordon Brown introduced a dividend tax for managed pension funds”

          Translation. Gordon Brown raised taxes, but he was Labour, so it was OK.

          1. Peter2
            August 24, 2021

            That big change, plus very low interest rates, plus changes to tax benefits to pension investing, have spoilt pensions for the current generation.
            But it began with Brown’s taxing of dividends.
            Billions were raised from pension funds which could have snowballed and created better pensions for retirees.

          2. MiC
            August 25, 2021

            No, Tory employment “law” legalising the closing of occupational pension schemes is the main thing which has spoilt it for the young.

          3. Peter2
            August 25, 2021

            Tory employment law?
            What on Earth are you going on about again MiC
            The Conservatives introduced workplace pensions in 2012.
            Look it up.

      2. a-tracy
        August 24, 2021

        Well if he does mug private sector pensions again we must all go on strike and demand action on public sector final salary and guaranteed benefit schemes to match. All people need to be on nest and the same private pensions savings schemes so that we all suffer their brilliant attack everyone else’s pension rights but themselves and their unionised workers rights.

        1. Lifelogic
          August 25, 2021

          +1

      3. Lifelogic
        August 24, 2021

        His first act (pre Covid) was to slash Gordon Brown’s entrepreneurs’ relief CGT relief tax break by 90% to deter people from investing in the UK and send a message that Sunak is anti-business. This was one of the only/few sensible things Gordon Brown did. Well done Sunak yet another PPE grad with zero understanding of business, science, logic or economics! He even taxed people to pay for others to eat out in restaurants – moronic.

        1. alan jutson
          August 24, 2021

          Lifelogic

          Eat out scheme.

          Yes indeed and most of the food purchased was low priced fast food by all accounts, that will helpkeep the NHS busy in a few years time.

          Lack of joined up thinking again.

        2. Mike Wilson
          August 24, 2021

          I ate out to help out. Happy to help myself. For once, eating out was a pleasure.

      4. Aden
        August 24, 2021

        It’s where there is some money. Ask why the pension debts are off the books

        1. Peter2
          August 24, 2021

          Because they are a liability but in a weekly pay out basis.
          To add all the people by their retired years and come to a total money figure to be paid out on just one day is ridiculous.

          Maybe you have a 25 year mortgage which you have steadily been paying back easily each month out of your earnings.
          Say I demand you pay it all back in cash tomorrow.
          Are you solvent?

    2. Everhopeful
      August 24, 2021

      +1

  27. X-Tory
    August 24, 2021

    Do we actually have a functioning government any more? Given what is happening in this country now I think this is a legitimate question. Just look at a few random stories:
    Record-breaking numbers of illegal immigrants not just being allowed to cross the Channel, but actually being HELPED to enter the country;
    Protesters being allowed to block roads while the police just stand around, doing nothing, and allowing them to disrupt the lives of the public and the economy of the country;
    Tens of thousands of Afghans being welcomed into the UK, including some who are known to be a danger to the UK being flown here;
    Constant promises made to prevent the EU’s annexation of Northern Ireland, but absolutely NOTHING actually done;
    Police prioritising ‘rainbow’ cars rather than investigating crimes ….

    I could go on but I’m sure the situation is clear to everyone: the government has just given up trying to run the country properly. we no longer have a government in Britain.

    1. Fedupsoutherner
      August 24, 2021

      X TORY. Best post of the day.

    2. jon livesey
      August 24, 2021

      “Tens of thousands of Afghans being welcomed into the UK, including some who are known to be a danger to the UK being flown here;”

      Given that the security service maintain the no-fly list, this looked like an inspired leak to me. The way the newspapers lapped it up also looked interesting.

  28. Nota#
    August 24, 2021

    It would appear from you comments and everything else, we first and foremost need a Government that instead of the daily mindless ‘virtue signal’ needs to be focused entirely in creating a strong resilient economy. Strangely they don’t seem to understand that’s how things get paid for, the ‘grandstanding’ the ‘political gesturing’ do not provide a strong healthy or wealthy country.

    We could start with the cancellation of the UN/COP26 in the form envisaged – its a contradiction and insulting messaging – ‘We the Elite talking heads can pollute, you the surfs must pay for it by cutting back.’

    If we had a proper UK Government wanting to ensure the safety and security of its people we wouldn’t have a cabal of left wing activists that instead of saying we will ensure the UK keeps pace with competitor nations on environmental issues, it will out bid them, go one better at every turn, at a cost of restricting UK growth and bring poverty to the nation – while others keep moving forward, doing what they can when they can afford it. That sort of direction and thinking will getting other Nations chuckling -m more for us the UK has given up. Then by Government dictate we keep importing from the 50% of the World that is not playing this game, the same 50% that causes 70% of World Pollution. Does the UK Government realise how stupid the are and look to the rest of the World?

    Government needs to keep repeating ‘its the economy – stupid!’ That should be the daily message nothing else.

  29. turboterrier
    August 24, 2021

    To attempt to create a more optimistic feeling within all these controlling government departments we need a really positive, bordering on aggressive leadership and not this talk a lot and deliver even less, face upto waste,real waste and not all these grandiose idea that spew out of No10. No more living in la la land. Get a grip on the problems that mean so much to the rank and file. How any politician can sit back and just accept the daily numbers of the dingy invasion , begs belief. Our leadership is neither use or ornament and that is the sorry story for all the political parties.

    1. NickC
      August 24, 2021

      Boris thinks exhortations are the same as actually doing a real practical job.

  30. Dave Andrews
    August 24, 2021

    I don’t agree with the philosophy that growth is the way to bring down the deficit. The answer should be to shrink the state. Examine spending and cut out the waste. The snag with this approach is politicians have no interest in such a policy. They would rather spend, spend, spend, then borrow, borrow, borrow.
    I can hardly blame the politicians for their policy, given they have been voted in on manifestos of spending. Look at election leaflets, they are all about what the candidate proposes to do, and never about how they would achieve saving.

  31. Bill B.
    August 24, 2021

    Meanwhile in the real economy supranational private equity firms are buying up British businesses whose customer base was hit by the government’s fear pandemic. Supermarket supply lorries lack drivers because the DVLA didn’t test enough lorry drivers ‘because of Covid’. Many of the drivers they do have are quarantining ‘because of the Covid app.’

    The chickens are coming home to roost for Johnson’s government (- and whether or not they can still be found in the supermarkets!).

  32. Iago
    August 24, 2021

    Reports and a warning from the French authorities that invaders crossing the Channel on Saturday were transporting arms. What happened? Were these people intercepted by the UK authorities, was any attempt made to find them and search them? Where are these people now? free among the population or in detention? Would you please urgently ask a government minister, JR. This refusal to stop an invasion, and especially now that it is armed, is a betrayal of the people of this country; it is treason.

  33. Donna
    August 24, 2021

    “Of course government also needs to manage the large public sector well and avoid waste and low productivity.”

    There’s not a snowball’s change in Hades of that happening. What they actually need to do is REDUCE the large public sector.

    They could make a decent start by scrapping the Police and Crime Commissioners and their bureaucracies. No-one wanted them; they have delivered nothing of any value.

    They could then strike a match and start the bonfire of the Quangos which Cameron promised and never delivered. Instead we get more and more created …. all with their Diversity/Equality Departments costing us a small fortune and determined to ensure that their definition of racism is continually expanded so that it will never be eliminated.

    They could slash the numbers in the House of Frauds. We don’t need 800+ entitled and self-entitled leeches all sponging off British Taxpayers.

    And finally, they could stop the UK Border Farce Free Ferry Service ….. which shipped 800+illegal immigrants here on one day.

    They will do none of the above. Because they haven’t the guts or the political will to do it. There is nothing conservative about this Government. It’s delivering socialism on steroids.

    1. turboterrier
      August 24, 2021

      Donna
      Not only gutless but two faced with it.
      Kippers everyone of them

    2. Timaction
      August 24, 2021

      Law and order. Why should we comply when this Government facilitates illegal entry?

  34. Peter Parsons
    August 24, 2021

    For the economy to grow, people need to be able to spend. To be able to spend, there needs to be things available to buy, yet in recent weeks Nandos have had to close branches due to an inability to get products to them, same with KFC, Mcdonalds currently have no milkshakes available anywhere, Arla have had to cut back on distribution of milk, and every time I go into my local supermarket, there are empty shelves.

    What do those companies and their industry bodies put this down to? One word – Brexit.

    This government’s Brexit, the way it’s been implemented and the decisions taken since are damaging the UK economy, plain and simply.

    1. Peter2
      August 24, 2021

      So not the effects of IR35 or Covid or EU citizens returning home due to the pandemic or millions being pinged or people testing positive and having to self isolate.
      Just Brexit.
      Yeah right.
      And the economy is growing.
      More than the EU

      1. Peter Parsons
        August 24, 2021

        Saying it’s Brexit would be a criticism of government policy. Saying it’s IR35 woud be a criticism of government policy. Saying it’s Covid pings and self-isolation would a criticism of government policy.

        So, saying it’s any or all of those would be the people who run the transport side of the UK supply chain criticising the government no matter what. And, according to them, it’s not IR35, it’s not Covid pings, it’s purely down to Brexit.

    2. Peter2
      August 25, 2021

      “One word, Brexit” is what you originally said Peter Parsons.
      Now you say you meant government policy.
      And CEO’s have spoken about reasons other than simply Brexit.
      But I realise for some remainers every single happening is due to one thing only.

  35. bigneil - newer comp
    August 24, 2021

    More on the radio about shortage of lorry drivers – shame all those coming into Dover are all surgeons and scientists.

    1. No Longer Anonymous
      August 24, 2021

      Very funny.

    2. Donna
      August 24, 2021

      Callers into Talk Radio are claiming that they are HGV drivers but can’t get their licenses renewed when necessary because the GP has to sign off the application and they’re all AWOL …. either refusing to see patients; earning extra money jabbing or on leave.

    3. jon livesey
      August 24, 2021

      “More on the radio about shortage of lorry drivers…”

      And what does that tell you? It tells you that in addition to importing trucks from the EU we were importing drivers as well, despite having people unemployed in the UK.

      This is how Brexit is playing out. It is eliminating sources of cheap EU labour, and then a shortage of drivers will push driver wages up, and then UK residents will be in line for UK jobs.

      1. No Longer Anonymous
        August 25, 2021

        Wage increases for drivers also proves what bunk it was to say that the EU wasn’t depression our wages.

        1. MiC
          August 25, 2021

          Perhaps -which will be passed on to shop prices and scupper the silly Leave claim – made by Tim Martin et al – that brexit would mean cheaper food.

          But I’d say that draconian Tory anti-union and anti-strike laws were a greater factor in low UK wages.

          It’s rather different in quite a few Mainland countries.

    4. Peter2
      August 24, 2021

      They can drive dingies but not lorries it seems.

  36. acorn
    August 24, 2021

    The OBR is not serving any useful purpose, it should be closed down along with the DMO and its “full funding rule”. BTAIM, number crunchers look at “Public sector current receipts: Appendix D”. You will see they are up 15% this July compared to last. Fuel duty is up 50%; VAT 18%.

    This months “Public spending statistics: July 2021” is a good read, particularly if you don’t know your DEL from your AME. See the charts at 4.2 Trends in functional expenditure.

    1. Peter2
      August 24, 2021

      Would you not expect receipts and fuel duty to be up compared to a year ago which coincided with Covid lockdown.

  37. a-tracy
    August 24, 2021

    And you need to deploy all resources to work to mend Britain. How much are you spending on all of this last years asylum seekers not expecting any work in return, do they even clean and cook for themselves?

    It is only foolish working Brits that keep being expected to pay more and more in for less and less service and facilities. Let’s just blame covid won’t last any longer.

    Just how much did the government save last year in 2020 alone after losing at least 80,000 pensioners to covid and their care home & social care spending, prescriptions & vaccinations, state pensions/pension credits, housing benefit needs, doctors, hospital beds & services. It seems what you saved with one hand we’re blowing on predominantly young fit men sitting around for 18 months doing nothing whilst our politicians are talking about green issues to save discussing difficult issues.

  38. Original Richard
    August 24, 2021

    “Of course government also needs to manage the large public sector well and avoid waste and low productivity.”

    This will not be possible if the Government continues with very large uncostifiable commitments such as unlimited immigration and net zero by 2050.

    828 ‘migrants’ crossed the Channel last Saturday bringing the total this year to over 8000 the majority of whom will need accommodation, upkeep, medical services and social care, pocket money, human rights lawyers, translators, and necessitating a big increase in our security services etc..

    The other unquantifiable cost is net zero by 2050 where the only plan the government appears to have to cut our CO2 footprint is to reduce our spending and travel through either draconian laws, rationing or massive price increases.

    We will become like communist Cuba populated by an abundance of different tribes.

  39. glen cullen
    August 24, 2021

    This is the decade of ‘zero’, could we have zero borrowing and only life within our means

    1. glen cullen
      August 24, 2021

      Live

  40. X-Tory
    August 24, 2021

    I must be honest and just admit that I do not understand the mentality of Conservative prime ministers. Not just Boris, but those before him like May and Cameron. Why do they prefer to help foreigners rather than their own people, their own electorate, their own ‘kith and kin’? Look at Boris’s current obsession: helping Afghans. Why? We have spent 20 years already trying to help them, at great cost both in terms of British lives and money. Why is this not enough? Or look at the thousands upon thousands being helped in over the Channel. Why?

    Money is not an unlimited resource. Therefore, every penny spent on foreigners is money not available to help the British. In order to help foreigners we have to cut benefits and pensions paid to Britons in need. We have to cut spending on healthcare and social care, on education and on policing, on housing, public services and on the environment. Why make all these cutbacks here at home in order to help foreigners? I really don’t get it. But what I do get is that the twisted priorities of Conservative prime ministers are not my priorities, and that’s why I cannot vote Conservative again.

    1. Hat man
      August 24, 2021

      As long as we think the Johnson government has anything to do with Conservatism, we will go on being puzzled and asking ourselves why, why why?

      Across Spain, France, Italy, Germany and much of the USA, the same agendas are being followed, with the same modus operandi: taking away from the state the ability to set its own priorities as regards energy policy, migration, support for the traditional family, freedom of medical choice, mega-profits for supranational corporate business, etc. etc. It doesn’t much matter whether the label on the government is Socialist (Spain), Centre-right (France and Italy), Centre left-Centre right coalition (Germany), Democrat (USA). All of them tend to follow global agendas set by global bodies and/or their plutocrat funders. Johnson is toeing the line. Opposition to any of these agendas brings massive pressure on a country, as we’ve seen on different issues with Poland, Hungary and Belarus. Johnson would never have the cojones to stand up to it, even if he wanted to.

    2. Fedupsoutherner
      August 24, 2021

      X TORY. Yet another good post. Everyone I speak to feels the same way. The Conservative party has completely lost its way and I don’t think we owe Afghans anything after the millions we put in. Are these people going to be found and prosecuted that have extorted money?

    3. DOM
      August 24, 2021

      The Tory party is captured. It isn’t in control of itself. It has become a puppet of both the domestic Marxist race lobby and by their own actions committed this nation to a international treaties that demand we take more and more.

      The aim is simple. To protect the Tory party from harm. All else is utterly subservient to this one fundamental purpose including national identity, culture, public finances, peoples security, social stability, freedom and voice. All will be sacrificed to insulate the Tory party from those owibble lefty types who can now play the race card at any Tory MP and play them like the puppets they have become. It’s tragic for I suspect many Tory MPs are bereft at the current state of affairs

      I dismiss most of the stuff written by John even though I appreciate his efforts in keeping this blog going., It allows plebs like me and others to offload our frustrations but we all know as a party politician most of it is but a mere fraction of what he really believes

      And Johnson. Well, I cannot even look or listen to this person. The arrogance of his deception staggers belief. He’s an offence on every level

      The Tory party’s appeasement to the Marxist scum is killing this nation and it’s only the beginning of the crackdown. I sense far more oppressive action to come from the Parliament of brigands

    4. alan jutson
      August 24, 2021

      X Tory

      Rest assured you are not alone in your thinking.

    5. Timaction
      August 24, 2021

      +1

    6. No Longer Anonymous
      August 25, 2021

      I’ll vote Labour rather than Tory now.

  41. No Longer Anonymous
    August 24, 2021

    “Lay down suppressing fire…” (Aliens, the movie)

    11 years of Tory government and what a mess.

    20 chaps – with token baby – turn up on Broadstairs beach yesterday. The tip of the iceberg. Aided and abetted by the Tories.

    No milkshakes in McDonald’s (good !) but please don’t tell us Mrs May wasn’t given 5 years to get UK drivers and staff sorted out … but then, her aim and energy was focused on staying in the EU, wasn’t it.

    Leader of Torbay council telling residents of a gypsy camp that has set up (and ruined the local tourist season) “It’s OK. We’ve done welfare checks and we are not discriminating. The reason they are here is that there were no materials to put up barriers due to Brexit.” Nothing to do with HS2 sucking all the materials out of the building industry then.

    Brighton looking like a jungle because the council uses to use weedkiller. Similar is happening here too.

    Public sector borrowing is just going to keep going up and up. The country has never looked and felt so communist as it does now.

    1. No Longer Anonymous
      August 24, 2021

      *refuses* to use weedkiller.

  42. Everhopeful
    August 24, 2021

    From the Metro
    “Coastguards were reportedly on high alert for firearms aboard migrant boats this weekend following a warning from the French authorities”.
    Thanks, dear government!

    1. Fedupsoutherner
      August 24, 2021

      Everhopeful. It just gets better and better. We have a government that just doesn’t give a toss.

  43. Aden
    August 24, 2021

    Then there are those pension debts. 14,000 bn rising at 1,400 bn a year. What’s 3-400 of borrowing when you have those debts?

    Ah yes, not owed to the banks, owed to the little people, so they don’t count.

    Given that debt is growing at over 10% per year, can you get sustained 10% increases in GDP? Silly me, of course, you can’t.

    Now since that debt is inflation-linked you cannot inflate your way out of it. You have to tax your way out or default.

    Do you think you can get another 1,400 bn a year on top of the 750 bn a year current tax take? Of course not.

    So you have to default.

    1. Peter2
      August 24, 2021

      Why do you have to default?
      You are only looking at the liability side of the balance sheet not the asset side.
      Total pension liability will never be “called” on just one day.
      They are a a continuing weekly pay out using current government income.

  44. Peter Martin
    August 24, 2021

    It is a simple matter of accounting that the Government’s borrowing is everyone else’s saving. If anyone is lucky enough to get a tax rebate they can spend it or save it. If the money is spent and respent it will eventually come back to the government as taxation revenue and won’t contribute to an increased deficit, however the spending and respending does have a potential reflationary inflationary effect. If it is saved it will end up as Govt bonds or become inert in a money box or safe deposit somewhere. It has no reflationary or inflationary effect but will add to the deficit.

    Running a deficit is not inflationary per se. The danger might be that the saved money will be spent too quickly. Ricki Sunak needs to keep his eye on the inflation figures before putting his foot on the economic brake.

  45. Peter Martin
    August 24, 2021

    Sorry that should be Rishi Sunak. Spell checkers are a pain sometimes!

  46. hefner
    August 24, 2021

    Not really directly related to today’s topics, but interesting on matters financial:
    ‘What data HMRC’ says it ‘can access:
    – info from employers
    – other govern’t departments and public bodies
    – credit reference agencies
    – banks & other financial institutions
    – public sources (sic)
    – people you do business with
    – your agent or representative
    – overseas tax authorities.
    What HMRC is likely to have also been using (but is not very clear whether it does or not)
    – credit & debit card transactions
    – DVLA records
    – travel records
    – passport info
    – Land Registry reports on property(ies)
    – social media (!).
    What OTS (Office of Tax Simplification) suggested HMRC should gather from third-party data
    – from investment& wealth managers, including on dividends, equalisation payments, reportable income, interest, chargeable gains
    – Gift Aid payments to charities ‘

    All that and a bit more from Emma Agyemang, 20/08/2021, FT, ‘HMRC digs deep into your data’.

  47. jon livesey
    August 24, 2021

    The tragic mess in Kabul is shining an interesting light on nations and their actions. The UK has been unable to persuade the US to extend its evacuation deadline, and as a result the papers are filled with crocodile tears about British influence and the special relationship.

    But this week the UK polled the G7 and NATO in general about the possibility of a NATO force to operate after the US left and got absolutely nowhere. Not one G7 or NATO country was willing to risk force in Kabul after the US withdrawal.

    So is the real problem that we can’t get the US to change its mind? Or is the real problem that, apart from the US and UK, not a single ally is will to take the risk of doing anything at all? In other words, Biden works for the US and makes his own decisions and the US is literally the only game in town?

    Our choice is to work with the US to US deadlines, or “work” with an EU/G7 that won’t do anything at all except piddle around ineffectively under US protection.

  48. Iago
    August 24, 2021

    Kent Coastguard helicopter stays two miles away from invaders’ dinghies ‘for safety reasons’. Disgusting beyond belief. The Conservative government obviously could not care less whether we British live or die. Part of the great reset I suppose – net zero, total vaccination and vaccine pass and no free speech.

  49. Jasper
    August 24, 2021

    Ask yourself – if the UK was invaded tomorrow, where would you flee to? I am sure a lot of you would remain in your homes, I know I would. Whilst I feel a lot of empathy for the Afghan people, I really cannot understand why you would leave your country. If you want to change things surely you can only do this from within your own country. I also believe the British people will speak loudly at the next election and the tories will suffer the biggest trouncing they have ever had, especially if they don’t sort the Channel crossings out.

  50. Mike Wilson
    August 24, 2021

    Given the general sentiments expressed on here, I am surprised that those of you that think of yourself as being ‘Tory’ are not confronting your MP and letting them know precisely how you feel about the assisted passage system the government is running in the English Channel. Or ringing up the head of the local party in Uxbridge and getting Boris deselected. And Patel too.

  51. Diane
    August 25, 2021

    M W above: Channel – Many have indeed written to their MP on these issues including myself. I care little nor use Twitter but many tweeting individuals I see daily just in passing & also on line article comments are expressing their feelings in no uncertain terms and also tweeting same to politicians & news outlets. People often too seem to be incredulous at the lack of any regular commentary or acknowledgement coming from the mouths of our government & our Leader. 828 / 30 boats on Saturday. How many since then last 3 days?Dover facilities being enlarged as we speak, initial cost £2 million, estimated 40 staff to run it next year and millions more ongoing. 90 plus hotels in UK being used, as of two weeks ago, must be more by now ? It might be a good exercise for the H O to make available on the government website numbers of arrivals ( by illegal means) daily and into which ports and beaches for example. assuming not already happening. People do care & just want the truth. I honestly feel many people just feel abandoned in all of this. Is that selfish or whatever else the ordinary concerned person may be labelled ? I think not.
    Just saw an interesting short report & video on the Sky News dot com site- re French side of Channel – titled ‘We are here to save people’ Undercover with detectives stopping Channel crossings – noting that Sky had been given all areas access to the French Police officers trying to thwart small boat crossings ( £54 mn ) The Guardian reported on 23/8, the UK has 44825 asylum seekers supported by the Home Office & that a quarter of those are housed in just 10 local authorities, 9 of which are reportedly in the most deprived areas in our country.
    Now look at the proposed initial funding, though just the tip of the iceberg, being reported for the incoming legal arrivals. No judgement here but reports suggest councils will be given grants to rent or buy family homes to house evacuees, many with much larger than average size families and, right or wrong, the reported average of 7 to 12 not that unusual. The report I saw stated that councils are already offered £10.000 per Afghan refugee to help with accommodation and support. I’m sure we all feel proud of our armed forces in their efforts to protect others & themselves in this unenviable task.

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