Surge in Government Borrowing Surprises Markets

Sajid Javid

The Government has confirmed that borrowing has increased sharply this financial year, with £16 billion borrowed since April, an increase of £6 billion on the 2018 figures. The budget surplus in July also slumped to £1.3 billion in 2019, against a surplus of £2.7 billion in 2018. Sajid Javid, the Chancellor of the Exchequer, will now face a choice between cutting back on public spending or seeing Government borrowing increase by higher levels than in previous years.

John McDonnell, the Shadow Chancellor, said:

“With the Conservatives only interested in forcing through a No Deal Brexit, nine years of economic mismanagement have left our public services in a terrible state ahead of the Spending Review.

Instead of borrowing yet more money to fund their failed programme of tax cuts, the priority has to be reversing the damage done to schools and social care, and stopping the rollout of Universal Credit which is causing so much hardship. Labour in government will deliver the radical transformation to our economy that is desperately needed to boost living standards and eliminate in-work poverty.”