Whoops: The UK's Latest Budget Data Is Already Making Austerity Targets Look Silly

british

That was quick.

The U.K.’s latest budget deficit targets are already on track to be missed. That’s because June borrowing of 14.5 billion pounds blew away expectations for 13 billion pounds. May borrowing data was also increased to 17.1 billion pounds from 16 billion.

Telegraph:

If the trend continues, the Government may miss its target for the budget deficit, raising fresh questions about the country’s ability to control its £927bn debt burden.

Jonathan Loynes, of Capital Economics, said: “June’s borrowing total left a cumulative deficit in the first three months of the year of £40.3bn. Extrapolating this forward points to a full-year deficit of about £152bn, about £3bn above the Budget forecast.”

Here’s the pound’s recent action, note how it was completely shocked by the data, but then recovered somewhat.

Chart

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