In May 2024 The International Monetary Fund warned Britain's government that it was on course to miss its debt target and said tax rises, rather than cuts, were likely to be needed to repair the public finances after the COVID pandemic and the surge in energy prices. Net borrowing excluding state-controlled banks was 20.5 billion pounds ($26.05 billion) last month, 1.5 billion pounds more than in April 2023, official data showed on Wednesday. It was higher than the median estimate of 19.3 billion pounds in a poll of economists which was also the expectation of the government's budget forecasters.
Narrow down the conversation to these participants:
@9P2LR255mos5MO
Yes, but not at the expense of cutting public sector pay, we should just rely more heavily on taxing the rich and big businesses
@9QDMYWP5mos5MO
The government sould give legitimate evidence to support sector borrowing in justify it for either the public or independent board.
@9Q8GHDB5mos5MO
In the long run yes but in the short term we need to borrow more to invest in growing industries like renewables.
@9QN4674Conservative5mos5MO
A balance will need to be sought. If industry or output increases then so would revenue to cover borrowing.
@9PSPG2W5mos5MO
not at the expense of pulic services like social services, disability benefits. All public services need to be well managed,
@9PRGGCL5mos5MO
Only when other things the government urgently need to spend out on, reduce significantly. And when the economy is gaining eg above 1%
@9NZJRTW5mos5MO
Borrowing should be reduced primarily by raising taxes, with some element of spending cuts where necessary.
@9MTQRZJ6mos6MO
I don't agree as it'll always be an excuse for cuts but the amount of debt leaves them no choice.
@9PK3DF25mos5MO
We pay enough taxes, what needs to happen is better management of funds. Public sector shouldn’t need to borrow with the amount of tax revenues paid.
Yes in the long term, but not at the expense of stymying any growth and fixing the issues inherent to the system at present.
@9PGRWXH5mos5MO
No, but overtime should replace it with fundraising where the workers get paid a commission of the fundraising
@9P3XRYD 5mos5MO
No, increasing debt to stimulate the economy with national infrastructure projects is an effective way to develop the country however debt should not be used to meet the costs of Operational Expenditure.
@9MVW7RN6mos6MO
The government should borrow money to build social housing and improve infrastructure
@9MVQFN36mos6MO
Only when feasible to do so without putting additional strain on the country.
@9MVKF5MWomen's Equality6mos6MO
Tax the rich more and claim tax for companies, Embassies and non-doms that are avoiding, which should contribute to state services and reduce borrowing.
@9MTVD5J6mos6MO
With the right borrowing we can stimulate growth and investment with an eye to then payback
@9MT8NL96mos6MO
Depends on what sort of fiscal and monetary policy is in place at the time. I feel that the debt:GDP ratio should be revised upwards to provide the government with more scope to borrow to fund infrastructure growth
I don't mind the borrowing as long as it's good times for all instead of the greedy ones
@9MTV6PQ6mos6MO
Public sector borrowing is one of a basket of economic strategies. It should not be used to fund tax cuts.
@9MTRBP36mos6MO
Over time yes but short term borrowing is currently essential to invest in future growth
@9NT297L6mos6MO
Focus on growth to gain back the money spent rather than additional taxes making it harder for businesses to grow and employ more people.
@9MVLL4QWomen's Equality6mos6MO
Not initially but there should be a long term plan
@9MV4FB56mos6MO
It's not real money now so it is just more numbers added to a false balance sheet.
@9MTFF3L6mos6MO
I believe government should get cross political agreement to an infrastructure with at least a 30 year plan which can't be interfered with by short thinking government periods.
@9MYQSLZ6mos6MO
It depends what it is for. It should not be used for military and defence but for building social housing, improving the education system and improving infrastructure.
@9MVXB756mos6MO
Far too nuanced for this survey. Context dependent.
@9MY3G7X 6mos6MO
In a competent economic system a nation should have a national sovereign fund to draw on like Norway. Incompetent short termism is what leads to problems. In theory PSB should be constrained for all but infrastructure investment required to support necessary development. Too much is wasted however and political vanity projects are too much in evidence. Corruption and too little control abound. PSB is a vital tool but poorly used.
@9MWG7KW6mos6MO
Yes to the question but should properly fund the public sector centrally rather than borrowing through cutting defence budget and increasing taxes for super rich/corporations and closing loopholes for the super rich/corporations
@9MW2GDY6mos6MO
Borrowing to grow the tax base is fine. That can mean for economic stimulus or to keep the population more productive.
Loading the political themes of users that engaged with this discussion
Loading data...
Join in on more popular conversations.