Features

Money Minute Friday 20 December: public sector borrowing in the UK

Today's Money Minute – the last of the year – looks ahead to the latest data on public sector net borrowing, which gives us a snapshot of government spending.

In the UK this morning, we get the latest data on public sector net borrowing.This gives a snapshot of government spending.

In the first seven months of this financial year, borrowing was 10% higher than last year.That's because while tax receipts were higher this year, government spending was higher still.

Given that the government wants to turn on the spending taps next year, the press might pay more attention to this release than usual.But ultimately, from a market impact perspective, it's not particularly consequential in these days of low interest rates.

Markets may one day start to care about high levels of government borrowing a lot more than they do now.If inflation picks up, it will become an issue.But there's little sign of the so-called "bond vigilantes" returning to haunt markets quite yet.

That's all from us here at Money Minute for this year. We'll return on Monday 6 January. In the meantime, have a wonderful Christmas and a very happy New Year.

Recommended

How long can the good times roll?
Economy

How long can the good times roll?

Despite all the doom and gloom that has dominated our headlines for most of 2019, Britain and most of the rest of the developing world is currently en…
19 Dec 2019
27 October 1986: the City's Big Bang
This day in history

27 October 1986: the City's Big Bang

The deregulation of 1986 – dubbed the ‘Big Bang’ – brought the City into the modern age and helped it become the financial powerhouse it is today.
27 Oct 2020
Quiz of the week, 17–23 October
Economy

Quiz of the week, 17–23 October

Test your recollection of the events of the week with MoneyWeek's quiz of the week.
23 Oct 2020
In UK stocks, the market has chucked us a bone – we should grab it
Economy

In UK stocks, the market has chucked us a bone – we should grab it

UK stocks are trading at their biggest discount to global equities in 40 years. You should probably be looking to buy, says Merryn Somerset Webb.
22 Oct 2020

Most Popular

The Bank of England should create a "Bitpound" digital currency and take the world by storm
Bitcoin

The Bank of England should create a "Bitpound" digital currency and take the world by storm

The Bank of England could win the race to create a respectable digital currency if it moves quickly, says Matthew Lynn.
18 Oct 2020
Don’t miss this bus: take a bet on National Express
Trading

Don’t miss this bus: take a bet on National Express

Bus operator National Express is cheap, robust and ideally placed to ride the recovery. Matthew Partridge explains how traders can play it.
19 Oct 2020
Three stocks that can cope with Covid-19
Share tips

Three stocks that can cope with Covid-19

Professional investor Zehrid Osmani of the Martin Currie Global Portfolio Trust, picks three stocks that he thinks should be able to weather the coron…
12 Oct 2020