UK government borrowing rises

UK government borrowing rose by half a billion pounds in June.

According to the Office for National Statistics, public sector net borrowing, excluding interventions such as bank bailouts, was £14.4bn last month.

While tax revenues increased in the month by 3.6 per cent to £40.9bn, total government spending only dipped by less than 1 per cent to £52.4bn.

This is up from £13.9bn in June 2011, and raises doubt over the government’s ability to meet full-year targets to bring down borrowing.

Borrowing in 2011-12 was also revised downwards. The ONS has said today that borrowing in the last financial year was actually £125.7bn, down from the original estimate of £127.6bn that it made last month.

The figures come after the International Monetary Fund said this week that the government should slow the pace of the tough austerity measures if the economy fails to pick up.

Colin Edwards, economist at the Centre for Business and Economic Research (Cebr), said, "The ability of the government to borrow at historically low interest rates – the yield on 10-year government bonds currently stands around 1.5 per cent - provides some room for manoeuvre in the government’s attempts to reduce the deficit. Indeed, the debate over the pace of fiscal consolidation gathered momentum this week as the International Monetary Fund (IMF) slashed its forecast GDP growth for the UK to 0.2 per cent for 2012 from 0.8 per cent in its April forecast, bringing it closer to Cebr’s most recent forecast for a 0.2 per cent contraction this year.

"Against this backdrop, the OBR forecast for public sector net borrowing to fall this year by around £10bn looks under threat. Hence, the government is between a rock and a hard place: economic growth is minimal and the deficit appears to be rising again. The IMF’s remarks this week mean the debate around easing the pace of fiscal consolidation is likely to gather momentum in the lead up to the Autumn Statement."

This article first appeared in economia.

Photograph: Getty Images

Helen Roxburgh is the online editor of Economia

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David Cameron is enlisting a tactic from a Private Eye cartoon to get young people to vote

CringeyMcCringeFace. 

Your mole was heartened to learn last week David Cameron is concerned about the youth vote in the upcoming EU referendum – so much so that he has recruited some bona fide yoof experts to get them to the polling station.

We waited with baited breath to see what the experts – Facebook, Uber, a brand called Snap Fashion, and purveyors of blokey news The Lad Bible – would come up with in their brainstorming session. A sophisticated Facebeook ad campaign? Polling station Ubers? Get the lads out on the doorsteps?

Instead, the wise millennial prophets (specifically the founder of Snap Fashion) came up with "VoteyMcVoteFace", a campaign in which young people would share pictures of their "vote face" on social media, which launched over the weekend. Because the young love selfies, you see. And they all wanted that boat to have that silly name

According to the Financial Times, a source said David Cameron was pleased with the idea. "The PM believes it is essential that we all do everything we can to encourage more young people to register to vote in a referendum that will have such a huge impact on their future."

He may be less pleased to know that the idea was in fact touted before - according to James Cook's Twitter feed, in Private Eye:

Great minds think alike. Your mole would have opted for Quiet Millennial Batpeople, personally. 

I'm a mole, innit.