U.K. Deficit Swells as Recession Hits Taxes

[questionmark]

Britain had a larger budget deficit than economists forecast in May as the recession depressed tax receipts and government spending surged.

The shortfall, which excludes government support for banks, was 17.9 billion pounds ($28 billion) compared with 15.2 billion pounds a year earlier, the Office for National Statistics said in London today. Economists forecast a deficit of 14.8 billion pounds, according to the median of 16 estimates in a Bloomberg News survey. Spending jumped 7.9 percent and revenue rose 1.6 percent. Income-tax receipts fell 7.3 percent.

The figures may provide ammunition to the opposition Labour Party, which says the government is making the recession worse by trying to cut the deficit too quickly. With the euro-region debt crisis intensifying, the data cast doubt on whether the government can achieve its goal of cutting the deficit to 120 billion pounds in the current fiscal year.

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[smurf0852]

well anyone with more than 50% use of there brain could see this was going to happen.you cant throw 1.4 million civil servents out of work overnight because you think the private sector will create jobs to take up the slack in a recession ?.the uk ecomomy is now totaly devoid of demand intrestingly not of luxury goods but of everyday goods.the tories think making the rich richer is good for the ecomomy it obviously isnt.they came into power by spouting things like the lazy unemployed and the immigration problem playing on ignorent peopls fears which in the most part are unfounded.they have then launched an unpresedented attack on our public services and the most vunerable of our society while at the same time letting the rich dodge tax which could sort out our defecit problems without the wealthy breaking into a sweat.these scumbags in power are doing what all politicians do while in power feathering the nests they will fit into when they get kicked out .they most certainly not are doing what is best the the people of our country.

[Coffey]

well anyone with more than 50% use of there brain could see this was going to happen.you cant throw 1.4 million civil servents out of work overnight because you think the private sector will create jobs to take up the slack in a recession ?.the uk ecomomy is now totaly devoid of demand intrestingly not of luxury goods but of everyday goods.the tories think making the rich richer is good for the ecomomy it obviously isnt.they came into power by spouting things like the lazy unemployed and the immigration problem playing on ignorent peopls fears which in the most part are unfounded.they have then launched an unpresedented attack on our public services and the most vunerable of our society while at the same time letting the rich dodge tax which could sort out our defecit problems without the wealthy breaking into a sweat.these scumbags in power are doing what all politicians do while in power feathering the nests they will fit into when they get kicked out .they most certainly not are doing what is best the the people of our country.

Well said.

[godnodog]

well anyone with more than 50% use of there brain could see this was going to happen.you cant throw 1.4 million civil servents out of work overnight because you think the private sector will create jobs to take up the slack in a recession ?.the uk ecomomy is now totaly devoid of demand intrestingly not of luxury goods but of everyday goods.the tories think making the rich richer is good for the ecomomy it obviously isnt.they came into power by spouting things like the lazy unemployed and the immigration problem playing on ignorent peopls fears which in the most part are unfounded.they have then launched an unpresedented attack on our public services and the most vunerable of our society while at the same time letting the rich dodge tax which could sort out our defecit problems without the wealthy breaking into a sweat.these scumbags in power are doing what all politicians do while in power feathering the nests they will fit into when they get kicked out .they most certainly not are doing what is best the the people of our country.

Every1 knows and understands what ur saying, except finances, economic and politic people, with the last 3 always saying "It was not predictable that things would turn out so bad".

[Mr Right Wing]

well anyone with more than 50% use of there brain could see this was going to happen.you cant throw 1.4 million civil servents out of work overnight because you think the private sector will create jobs to take up the slack in a recession ?.the uk ecomomy is now totaly devoid of demand intrestingly not of luxury goods but of everyday goods.the tories think making the rich richer is good for the ecomomy it obviously isnt.they came into power by spouting things like the lazy unemployed and the immigration problem playing on ignorent peopls fears which in the most part are unfounded.they have then launched an unpresedented attack on our public services and the most vunerable of our society while at the same time letting the rich dodge tax which could sort out our defecit problems without the wealthy breaking into a sweat.these scumbags in power are doing what all politicians do while in power feathering the nests they will fit into when they get kicked out .they most certainly not are doing what is best the the people of our country.

The problem isnt Conservatism its that they are trying to do Conservative things during a depression. Its the wrong time.

The government needs to get more money circulating our economy. I too am against increasing the amount of civil servants but there are other ways. Higher Jobseekers allowance, increase the amount of soliders, creating some new industries and then privatising them. In the Great Depression the Americas kick started the economy with dam projects. We could even go Dutch and build dykes to increase our farmland.

UK GDP may be high but the leakage of money out of the country is ridiculas. We could rebalance our books as another step to kick start the economy. Trade barriers to protect the industry we have and investment to build new industries we need. Then privatise them.

Edited July 2, 2012 by Mr Right Wing