Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Public borrowing to soar to £175bn

Press Association
Wednesday 22 April 2009 13:10 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Public borrowing will soar to a record £175bn in the current year - or 12.4 per cent of the UK's annual economic output - Chancellor Alistair Darling said today.

The plunge into red comes as the Treasury wrestles with a toxic combination of falling tax receipts, higher spending and the cost of bank bail-outs.

Including the £90bn borrowing for 2008/09 unveiled today, total net borrowing is forecast to hit £696 billion by 2012/13 - almost £240bn more than the Chancellor predicted in November's Pre-Budget Report.

Mr Darling also confirmed the worst year for the economy since the Second World War with a 3.5 per cent decline in 2009 - far worse than his pre-Budget forecasts.

He expects the economy to grow by 1.25 per cent in 2010 - also below November's forecasts - before the pace of the economy quickens in 2011 with a 3.5 per cent expansion.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in