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Government debt crosses the £2,000,000,000,000 barrier

August 28, 2020

Yes, you did count correctly – there are twelve zeroes after the two. Another month of Government borrowing above £20bn has pushed total Government debt over the £2tn level for the first time.

The Public Sector Finances data released by the Office for National Statistics (ONS) on Friday were notable mainly for that £2tn figure. It is no surprise, given that the June figure for public sector net debt (PSND) was £1.983.8tn, but moving from £1. something to £2. something makes good headlines. In reality, the July numbers were slightly better – or perhaps that should be not as bad – as had been expected:

In the circumstances it is surprising that the reduction was not greater. The OBR had reckoned that 90% of tax due would not be paid. As the OBR hints, those constructively ambiguous words on the HMRC website telling taxpayers “you can still make the payment by 31 July 2020 as normal if you’re able to do so” clearly worked…

Summary

Well Apple (The US Tech giant) hit a market cap of $2 trn last week, doubling in valuation in just over two years.  It’s the first publicly traded U.S. company to reach a $2 trillion market cap and Apple was also the first publicly traded U.S. company to reach a $1 trillion market cap….. Maybe a Trillion is the new Million?

 
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