More bad news for the economy with the release today of figures that show that Public sector borrowing reached its highest level since 1946 in the first six months of the financial year.
It is a worrying trend given that it appears the government are going to Roosevelt the economy by spending their way out of recession.It doesn't need an expert to predict that with falling income from taxes and Vat during the recession,increased spending will result in even higher borrowing.
Total government borrowing from April to September soared to £37.6 billion.Today's figures may well result in total borrowings for the year of £60 to £70 billion and may well go even higher.
Meanwhile Ernst and Young's analysis that we are already in recession comes as no shock
The UK economy has "deteriorated dramatically" in the past three months, and is already in a recession, top forecasters have suggested (BBC ONLINE)
They are suggesting three consecutive contracting quarters with the economy only turning towards the middle of next year and growth of only 1% in 2010.
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