The British Government risk facing the worst crisis of the budget deficit, than Greece, which raises serious concerns about the economic stability of the country.
Economists argue that the scale of the budget deficit this year could exceed £ 180 billion
Sterling fell to the unexpected news, after official data showed that the Government has taken £ 4.3 billion last month.
For the first time since 1993, public finances went into negative in January and this month, which is usually tax revenues to the Treasury is moving a significant plus. Economists say that the magnitude of the budget deficit this year could exceed £ 180 billion, even higher than the Chancellor's forecast of a record £ 178 billion.
This deficit (12.8% of UK GDP) could be more serious than that faced by Greece, which already faces a widespread financial crisis, and perhaps she will need help from other eurozone countries or the IMF.
Data on loans coincided with the bad news real estate market, as well as the Council of Mortgage Lenders said a fall in lending last month by 32%, beating, thus, the lowest in a decade.
Bank of England also reported a reduction in lending to enterprises, which suggests that the recession is far from complete.
Poor economic performance has become a serious blow to Chancellor Alistair Darling (Alistair Darling) month before the budget, which, he hoped, would give evidence that the economy is recovering.
The news also appeared on the background of the informal launch election campaign Gordon Brown's Labor Party, which the Prime Minister is planning to build on the basis of economic performance and policies.
Tomorrow Brown will announce the election slogans of the Labor in the general election, which is scheduled for May 6. Here they are: "Ensuring recovery", "Protection of basic services", "Support of the majority", "Protection of future jobs and industries.
Despite the growing warnings from economists and businessmen that the size of the deficit is a serious threat to the future of the British economy, the Labor Party say that government spending should not sokrtitsya until 2011/2012.
In his speech in London, the Prime Minister will insist that the Conservative plans to curb the deficit by reducing spending this year could undermine the recovery.
"Instead of helping restore, their contempt for the government's actions could create additional risks for recovery," - says Brown. "Rather than protecting ordinary families, depriving them of opportunities."
Office for National Statistics said that the government has never had to deal in January, adding that the shortage of funds, which led to borrowing £ 122 billion this year, equivalent to the duty of every Briton to £ 2,000.
The scale of the debt was much higher than in past recessions, since the economic recession resulted in a decline in tax revenues, especially from the City, as well as a sharp increase in social benefits and unemployment benefits and the disadvantaged.
Jonathan Loyns (Jonathan Loynes), of Capital Economics said that although Britain's national debt was much lower than the Greek, the deficit in Britain and the speed with which it occupies, can now be even higher.
He said: "With the budget deficit, which tends to 13% of GDP this year, which may exceed even the Greek, it is clear that a more robust plan to rebuild public finances will need immediately after the general elections in order to keep a lid on markets and rating agencies.
A number of economists and businessmen urged the government to reduce the deficit faster and more thoroughly than is done now, based on the opinions of 20 leading scientists warning last week that because of inactivity, the British government could face a devastating financial crisis.
The Conservatives warned that Britain could donate their top credit ratings, only if the next government will take decisive action.
Shadow Chief Secretary of the Treasury, Philip Hammond (Philip Hammond) said: "These horrific data showing a record deficit in January, illustrate the scale of the debt crisis of the Labor Party."
"The Prime Minister must heed the advice of leading economists and business leaders to present a credible plan to curb the deficit, and, starting this year, to put Britain back on its feet. The longer he delays, the greater the recovery and credit rating would be under threat. "
Following the statistics, the Treasury officials spent much of the morning, comforting and encouraging large investors not to panic in the City.
Nevertheless, as the interest rate, the cost of borrowing for the government rose to 4.1%, which is the highest level in 15 months.
The representative of the Treasury, said: "These findings convince us to make a preliminary forecast to publish the budget ... pre-budget report predicted a sharp drop in capital gains tax and income tax paid in this fiscal year, January is always the most important month for these income; today's data clearly show a downturn. "
James Owen (Owen James) from the Centre for Economics and Business Research said: "In light of the continuing problems in Greece, international investors are wary of economies with large deficits. Despite the fragile nature of recovery, Britain should avoid the attention of predatory eyes now to Portugal, Spain, Italy and Ireland. "
"It is important that the appropriate measures to reduce public borrowing has taken the next government, we are skeptical that the pre-election budget will contain measures that will help calm the markets. Today's data highlight the need for clear commitments on future policy. "
James Knightley (James Knightley), an economist at ING Financial Markets said: "Given the concern over public deficits in Europe at the moment, Britain could again become the focus.
Telegraph
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