The government has borrowed £26 billion less this financial year than it forecast in March. So what is the £10 billion NIC increase all about?

Posted on

Government 'borrowing' (or money creation as I would prefer to think of it) from April to July this year amounted to £78 billion against an estimate published in March 0f £104 billion, as this chart from the Office for National Statistics shows:

Thye planned £104 billion was apparently sustainable. That's hardly surprising: the deficit was covered by the Bank of England quantitative easing programme and did not really increase national debt at all in that case.

The actual borrowing is £26 billion less than that.

But we apparently require £10 billion if the NHS is going to have the funding it needs.

As is readily apparent, there is no need for that £10 billion tax increase. It is simply, not required. The cost of the NHS funding can be absorbed within existing budgets without detriment arising.

So what is this all about?


Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:

You can subscribe to this blog's daily email here.

And if you would like to support this blog you can, here:

  • Richard Murphy

    Read more about me

  • Support This Site

    If you like what I do please support me on Ko-fi using credit or debit card or PayPal

  • Taxing wealth report 2024

  • Newsletter signup

    Get a daily email of my blog posts.

    Please wait...

    Thank you for sign up!

  • Podcast

  • Follow me

    LinkedIn

    LinkedIn

    Mastodon

    @RichardJMurphy

    BlueSky

    @richardjmurphy.bsky.social

    Instagram

    @RichardJMurphy