CCR Magazine

CSA Top Banner
You are here  :Home arrow News arrow Consumer Credit News arrow UK's budget deficit to last a quarter of a century
Contact Us Newsletter Signup RSS Feeds

UK's budget deficit to last a quarter of a century PDF Print E-mail
Friday, 19 May 2017
It has been reported that the Conservative Party plans to achieve a budget surplus by 2025. The Centre for Policy Studies has provided an analysis of the changing borrowing forecasts. 

Key points
In 2010-11, the Coalition Government pledged to eliminate the cyclically adjusted current budget deficit by 2014-15. Public sector net borrowing was planned to reach 2.1% of GDP by 2014-15. Substantial progress was made in reducing the budget deficit, which was – on some measures – the highest of any OECD country in 2010. However, both of the budget deficit targets were missed. The cyclically adjusted current budget deficit was 2.5% of GDP in 2014-15 and public sector net borrowing was 5.2% (OBR public finances databank).

In 2015-16, the Summer Budget projected that public sector net borrowing would be in surplus by 2019-20. This target was dropped after the UK’s decision to leave the European Union. It has been reported that the Conservatives will pledge to get public sector net borrowing in surplus by 2025-26.

The last time that public sector net borrowing was in surplus was in 2000-01(OBR public finances databank). This means that public sector net borrowing is due to be in deficit for 25 consecutive years.

Head of Economic Research Daniel Mahoney responds to the Conservative Party’s budget surplus target by 2025: “According to the Conservative Party's fiscal target reported in the press today, the UK is set to reach a budget surplus by 2025-26. This will mean that the UK has lived beyond its means for a quarter of a century.

While it is quite understandable that Theresa May wants fiscal wriggle room during the Brexit negotiations, this fiscal target is disappointing. It should be seen as a ‘worst case’ scenario. The next government must aim to achieve a budget surplus at an earlier date.”
 
Enghouse Side Banner

CSA side

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

Consumer Sponsor

This Consumer Credit News section is currently available for sponsorship.

Please click here to contact us about our site sponsorship opportunities.

CSA

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197