This morning the Treasury has announced that public sector borrowing for November soared to its highest ever level, reaching £23.3 billion compared to £17.4 billion a year ago.
The news casts serious doubts on the credibility of the Coalition Government’s spending plans.
Commenting on the figures Philip Shaw at economics firm Investec told The Telegraph: “November’s numbers seem to be a result of very strong spending and weak receipts growth and it is very difficult to judge whether this is just a rogue figure or whether it re presents something more fundamental.”
Following the announcement sterling fell against the euro and dollar.
The pound has already been adversely affected today by announcements that UK consumer confidence has hit a 12 month low.
by Peter Lavelle with foreign currency exchange specialist Pure FX.
