This morning's figures on borrowing showed that the government has borrowed £4.3 billion in January, which was a lot higher than forecast.Analysts were initially forecasting a surplus of £2.8 billion and compares to a £5.3billion surplus in January 2009.
The main reason for the increase is falling tax receipts and it is the worst figure eveer for a January which is usually a surplus month as people complete tax returns and hand over money to the treasury.
We can't go on like this shouts Philip Hammond who adds that
The Prime Minister must now heed the advice of leading economists and business leaders and set out a credible plan to get the deficit under control, starting this year to put Britain back on her feet. The longer he delays, the more the recovery and our credit rating will be put at risk."
More worryingly government bond prices fell, as concerns grew about the credibility of Labour's plans to curtail a record budget deficit forecast to top 12 percent of gross domestic product this year.
We are now on course to run a higher deficit than the Greeks.
On top of that more bad economic news as mortgage lending dropped by nearly a third to £9.1 billion in January, that's 21 per cent down on this time last year.It is now at its lowest level since 2000.
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