British debt rises to £8bn in July
Alistair Darling is seeing a tough time ahead as figures compiled by the Office for National Statistics revealed that public sector net borrowing was £8 billion in July as compared with a repayment worth £5.2 billion for the same period a year earlier.
As the economic downturn has hit tax revenues, Chancellor Alistair Darling feared that net borrowing over the year as a whole would reach £175 billion.
Alistair Darling said figures were "consistent with the fact that the downturn at the beginning of this year and end of last year was very severe."
But, experts have cautioned the govt. that total debt for the entire year could cross £200 billion.
Official figurers showed that this was the first time the British Govt. had borrowed in July since 1996. It was also the highest figure since 1993, when records started.
Total net borrowing stood at £49.7 billion for the 4-month period of the current financial year, much higher than £15.9 billion a year earlier.
The public-sector budget deficit was recorded at £5.1 billion, first negative figure for the month of July on record.
At present, UK's overall debt stands at £800.8 billion, 56.8 per cent of country's of GDP.
Business tax revenues plunged to £6.2 billion in July as compared with £9.9 billion for the same period a year earlier.