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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Labour to strip "abusive" registered supporters of their vote in the leadership contest

The party is asking members to report intimidating behaviour - but is vague about what this entails. 

Labour already considered blocking social media users who describe others as "scab" and "scum" from applying to vote. Now it is asking members to report abuse directly - and the punishment is equally harsh. 

Registered and affiliated supporters will lose their vote if found to be engaging in abusive behaviour, while full members could be suspended. 

Labour general secretary Iain McNicol said: “The Labour Party should be the home of lively debate, of new ideas and of campaigns to change society.

“However, for a fair debate to take place, people must be able to air their views in an atmosphere of respect. They shouldn’t be shouted down, they shouldn’t be intimidated and they shouldn’t be abused, either in meetings or online.

“Put plainly, there is simply too much of it taking place and it needs to stop."

Anyone who comes across abusive behaviour is being encouraged to email validation@labour.org.uk.

Since the bulk of Labour MPs decided to oppose Labour leader Jeremy Corbyn, supporters of both camps have traded insults on social media and at constituency Labour party gatherings, leading the party to suspend most meetings until after the election. 

In a more ominous sign of intimidation, a brick was thrown through the window of Corbyn challenger Angela Eagle's constituency office. 

McNicol said condemning such "appalling" behaviour was meaningless unless backed up by action: “I want to be clear, if you are a member and you engage in abusive behaviour towards other members it will be investigated and you could be suspended while that investigation is carried out. 

“If you are a registered supporter or affiliated supporter and you engage in abusive behaviour you will not get a vote in this leadership election."

What does abusive behaviour actually mean?

The question many irate social media users will be asking is, what do you mean by abusive? 

A leaked report from Labour's National Executive Committee condemned the word "traitor" as well as "scum" and "scab". A Labour spokeswoman directed The Staggers to the Labour website's leadership election page, but this merely stated that "any racist, abusive or foul language or behaviour at meetings, on social media or in any other context" will be dealt with. 

But with emotions running high, and trust already so low between rival supporters, such vague language is going to provide little confidence in the election process.