£8bn hole in public finances to embarrass Osborne
Russel LynchGeorge Osborne, the Chancellor, faces political humiliation this week with public borrowing figures in the Budget expected to be £8bn higher than official estimates made just three months ago, a leading economic forecaster has warned.
The Ernst & Young Item Club says the UK's borrowing bill – stripping out one-offs such as the transfer of £28bn in Royal Mail pension fund assets to the public coffers – could jump to £88bn for the current financial year, up from the £80bn forecast by the independent Office for Budget Responsibility in December.
The forecaster pins the blame on lower tax receipts and disappointing revenues from the sale of the 4G spectrum, which raised £2.3bn instead of the £3.5bn pencilled in three months ago by the OBR. A limit imposed by the Office of National Statistics on the accumulated interest payments racked up by the Bank of England on its holdings of government gilts under quantitative easing has also created another black hole in the accounts.
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"£8bn hole in public finances to embarrass Osborne ", La Clé des Langues [en ligne], Lyon, ENS de LYON/DGESCO (ISSN 2107-7029), mars 2013. Consulté le 04/12/2023. URL: https://cle.ens-lyon.fr/anglais/archives/archives-revue-de-presse/8bn-hole-in-public-finances-to-embarrass-osborne-