{"id":59043,"date":"2021-09-07T11:08:36","date_gmt":"2021-09-07T10:08:36","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=59043"},"modified":"2021-09-07T11:08:36","modified_gmt":"2021-09-07T10:08:36","slug":"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","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2021\/09\/07\/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\/","title":{"rendered":"The government has borrowed \u00a326 billion less this financial year than it forecast in March. So what is the \u00a310 billion NIC increase all about?"},"content":{"rendered":"<p>Government 'borrowing' (or money creation as I would prefer to think of it) from April to July this year amounted to \u00a378 billion against an estimate published in March 0f \u00a3104 billion, <a href=\"https:\/\/www.ons.gov.uk\/economy\/governmentpublicsectorandtaxes\/publicsectorfinance\/bulletins\/publicsectorfinances\/july2021\" target=\"_blank\" rel=\"noopener noreferrer\">as this chart from the Office for National Statistics shows<\/a>:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-59044\" src=\"https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2021\/09\/Screenshot-2021-09-07-at-11.00.18-550x650.png\" alt=\"\" width=\"550\" height=\"650\" srcset=\"https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2021\/09\/Screenshot-2021-09-07-at-11.00.18-550x650.png 550w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2021\/09\/Screenshot-2021-09-07-at-11.00.18-254x300.png 254w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2021\/09\/Screenshot-2021-09-07-at-11.00.18-768x907.png 768w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2021\/09\/Screenshot-2021-09-07-at-11.00.18-1300x1536.png 1300w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2021\/09\/Screenshot-2021-09-07-at-11.00.18-339x400.png 339w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2021\/09\/Screenshot-2021-09-07-at-11.00.18.png 1368w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/p>\n<p>Thye planned \u00a3104 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.<\/p>\n<p>The actual borrowing is \u00a326 billion less than that.<\/p>\n<p>But we apparently require \u00a310 billion if the NHS is going to have the funding it needs.<\/p>\n<p>As is readily apparent, there is no need for that \u00a310 billion tax increase. It is simply, not required. The cost of the NHS funding can be absorbed within existing budgets without detriment arising.<\/p>\n<p>So what is this all about?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Government &#8216;borrowing&#8217; (or money creation as I would prefer to think of it) from April to July this year amounted to \u00a378 billion against an<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2021\/09\/07\/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\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,128,106],"tags":[],"class_list":["post-59043","post","type-post","status-publish","format-standard","hentry","category-economics","category-nhs","category-politics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/59043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=59043"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/59043\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=59043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=59043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=59043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}