National debt is now 33% of income, but will climb by another 3% to 36% by 2008-09, according to Gordon Brown's Budget speech.
After going to great lengths to stress a balanced economy is only achievable by looking at both the fiscal and the economy - rather than fiscal policy alone - Brown says it is in the national interests to borrow for investment.
As a result, national borrowing as a percentage of income will increase to:
- 34% in 2004-05;
- 35% for 2005-06;
- 36% for 2006-07;
- 36% for 2007-08;
- 36% for 2008-09.
As a side issue, Brown said his assessment of whether Britain should join the euro will now be looked at again in the 2005 Budget.IFAonline
What made financial headlines over the weekend?
Vitality at Work scheme
Reporting to Steve Hill
Appointed on 19 September