UK borrowed £14bn in May as inflation drove up interest debt costs | Payments leap 70% on a year ago to £7.6bn after larger-than-expected rise in government borrowing
UK borrowed £14bn in May as inflation drove up interest debt costs | Payments leap 70% on a year ago to £7.6bn after larger-than-expected rise in government borrowing
20 comments
Yes, that’ll happen because there’s index linked gilts. Generally though the inflation will actually reduce public debt against gdp. Even if nominal gdp growth doesn’t quite match inflation the debt to GDP ratio will still likely fall.
It’s a case of borrowing might be high but the debt burden reduces.
Remember when George Osborne said the deficit would be gone by 2015?
This is the preparation for a Labour government, will saddle the next administration with huge debt as a platform to get back in the following election.
Only £14bn? Surely we can easily recoup that by ~~asking~~ forcing those companies who got awarded corrupt PPE contracts to give the money back?
Government.. We need to increase unemployment in order to counter inflation. Also government.. Unemployed folk are scroungers
Long term financial plan???
Cutting borrowing when interest rate is low, hiking borrowing when it’s high. Genius level economic management.
See. They TOLD you this would happen. If you vote in a Labour government, they would ‘bankrupt the country’ and destroy this country’s finances.
….. Hang on a minute….
What the fuck was 10 years of austerity for? We’re more in debt than ever and that was before the pandemic.
Need to call out ludicrous government spending and borrowing. People need to call for a significantly smaller state. A country where government spending comprises an enormous percentage of gdp isn’t a healthy one
Have they tried running the government like a household? Asking for every boomer in the land
Yet they “lost” £9bn on fraudulent PPE contracts that they are NOT going to investigate
Sums up this govt when they pay more for debt when inflation is high but rates aren’t… it’s meant to be the opposite.
The Government of fiscal responsibility strike again
Indexed linked gilts are held by pension companies to pay pensions in payments
They are indexed so that pensioners are protected from inflation. When they spend the money, the rest of us get that extra money as additional wages and/or profits, which then increases the tax take because that’s how percentages work.
As ever you pay for it by spending the money,
Remember “Government debt” = “Private sector savings”. Mostly in your pension fund. If you want government debt to go down, you want risk free private savings in your pension fund to go down too.
And they don’t use Sterling anywhere else. It always has to be spent here.
Amazed that The Guardian didn’t explain that to the supposedly intelligent people who read it.
Almost like they have an agenda.
Odious debt.
Part of this being a direct consequence of Sunak’s quantitative easing of around £500bn to the banks of which we now pay interest of over 1% on
Let’s all go on strike and see if we can really ramp it up.
What exactly are they spending all this money on? Coz it isn’t anything tangible that’s for sure! Is tHM Treasury hoarding NFT’s???
‘Party of fiscal responsibility’ – bollocks..