UK Borrowing Rises – Euro Strengthens

borrowing

UK Government borrowing hit 14.2 billion Pounds, up 10% on November last year.
The Chancellor insists that his economic plan is working but the figures suggest otherwise.

Is the Chancellor being blown off course when it comes to deficit reduction?

His whole year target to April 2016 was set at 69 billion Pounds, but the above figures shows total borrowing up to November this year at 65 Billion pounds. It doesn't look like he will stay within his target budget.

The treasury insists these figures are bloated due to one off payments not factored in. An example being, having to bring forward an 800 million Pound payment due to the World Bank which would normally be paid in December but now made in November making the figures distorted. That's one reason the figures look bad the treasury insists.

If the Chancellor misses his target it may mean more austerity in next years April budget.

On this news the Euro strengthened against the Pound and may strengthen further into the future.

This is bad news for travelers who have booked skiing holiday's for early next year. Unless there is some negative news coming out of the Euro zone to counter this bad news out of the UK I expect the Euro to strengthen further going into 2016.

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