Mon. Sep 28th, 2020

Britain runs up biggest October budget deficit in five years – business live

10.01am GMT

Andrew Wishart, UK economist at Capital Economics, has been quick to comment on the surge in UK government borrowing in October. He reckons increased government spending captures the cost of preparations for a potential no-deal Brexit on 31 October.

The worst October for the public finances for five years won’t prevent whoever wins the election embarking on a fiscal splurge. Borrowing appears to have been higher than expected due to Brexit preparations, and leaves the budget deficit on track to rise for the first time in a decade this year. The investment plans laid out by the major parties suggest it will rise substantially further in 2020/21.

The government borrowed £11.2bn in October, up from £8.9bn last October (consensus £9.3bn) as departmental spending on staff and goods & services rose by £2.4bn compared to a year earlier. We suspect that reflects Whitehall preparing for a possible no deal Brexit at the end of the month.

9.56am GMT

Labour plans to fund some of its spending increases by raising income tax on the highest earners, as well as reversing cuts in corporation tax made since 2010. Jeremy Corbyn will unveil Labour’s election manifesto at 11am GMT in Birmingham.

You can read more on Andrew Sparrow’s politics live blog.

Related: General election 2019: Corbyn vows to take on wealthy elite as he launches Labour’s ‘manifesto of hope’ – live news

Related: Boris Johnson lets slip manifesto pledge to cut national insurance

Continue reading…UK public borrowing surges to £11.2bnStock markets fall amid worries over delay to US-China trade dealBeijing: will try hard to reach a trade deal 10.01am GMTAndrew Wishart, UK economist at Capital Economics, has been quick to comment on the surge in UK government borrowing in October. He reckons increased government spending captures the cost of preparations for a potential no-deal Brexit on 31 October.The worst October for the public finances for five years won’t prevent whoever wins the election embarking on a fiscal splurge. Borrowing appears to have been higher than expected due to Brexit preparations, and leaves the budget deficit on track to rise for the first time in a decade this year. The investment plans laid out by the major parties suggest it will rise substantially further in 2020/21.The government borrowed £11.2bn in October, up from £8.9bn last October (consensus £9.3bn) as departmental spending on staff and goods & services rose by £2.4bn compared to a year earlier. We suspect that reflects Whitehall preparing for a possible no deal Brexit at the end of the month. 9.56am GMTLabour plans to fund some of its spending increases by raising income tax on the highest earners, as well as reversing cuts in corporation tax made since 2010. Jeremy Corbyn will unveil Labour’s election manifesto at 11am GMT in Birmingham.You can read more on Andrew Sparrow’s politics live blog. Related: General election 2019: Corbyn vows to take on wealthy elite as he launches Labour’s ‘manifesto of hope’ – live news Related: Boris Johnson lets slip manifesto pledge to cut national insurance Continue reading…